MONTREAL, QUEBEC–(Marketwired – Aug. 14, 2017) – Knight Therapeutics Inc. (TSX:GUD) (“Knight”), a leading Canadian specialty pharmaceutical company, announced today that it has amended its secured loan agreement with Crescita Therapeutics Inc. (TSX:CTX) (“Crescita”), a commercial dermatology company with a portfolio of non-prescription skincare products and prescription drug products.
Under the terms of the amended loan agreement, Knight will receive early repayment of $2.5 million of the loan (reducing the principal amount to $4.1 million) and agreed to release its letter of credit in exchange for a general security interest over all of Crescita’s assets. As a result, Knight’s loan remains fully secured while providing Crescita with access to previously restricted capital to fund its operations. The loan continues to bear interest at 9% per annum and matures on January 22, 2022.
Concurrent with the amendment to the loan agreement, Knight surrendered its 293,163 common share purchase warrants of Crescita exercisable at $2.44 per share and was issued 396,000 new common share purchase warrants, 216,000 of which are exercisable at a price of $0.75 per share and 180,000 at a price of $1.00 per share, in each case for a period of six years.
Additionally, Knight received a right of first opportunity during the term of the loan to distribute Crescita products in Canada if Crescita chooses not to market the products itself in Canada.
“The primary objective of our strategic lending business is to create mutually beneficial partnerships and to secure innovative pharmaceutical product rights,” said Jonathan Ross Goodman, CEO of Knight Therapeutics Inc. “To this end, the amendment to this loan provides Crescita with additional flexibility to execute on its strategy to become a leading Canadian dermatology player while giving Knight an additional opportunity for product rights.”
About Crescita Therapeutics Inc.
Crescita (TSX:CTX) is a publicly traded, Canadian commercial dermatology company with a portfolio of non-prescription skincare products and prescription drug products for the treatment and care of skin conditions and diseases and their symptoms. Crescita owns multiple proprietary drug delivery platforms that support the development of patented formulations that can facilitate the delivery of active drugs into or through the skin. Crescita owns a portfolio of non-prescription skincare products and has one FDA approved prescription product, Pliaglis that is licensed globally to Galderma SA and Taro Pharmaceuticals for the U.S. market. Crescita owns the sales and marketing rights in Canada and Mexico. For additional information, please visit www.crescitatherapeutics.com.
About Knight Therapeutics Inc.
Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and select international markets. Knight Therapeutics Inc.’s shares trade on TSX under the symbol GUD. For more information about Knight Therapeutics Inc., please visit the company’s web site at www.gudknight.com or www.sedar.com.
This document contains forward-looking statements for Knight Therapeutics Inc. and its subsidiaries. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. Knight Therapeutics Inc. considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions the reader that these assumptions regarding future events, many of which are beyond the control of Knight Therapeutics Inc. and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations are discussed in Knight Therapeutics Inc.’s Annual Report and in Knight Therapeutics Inc.’s Annual Information Form for the year ended December 31, 2016. Knight Therapeutics Inc. disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events, except as required by law.