MONTREAL, QUEBEC–(Marketwired – Aug. 9, 2017) – Knight Therapeutics Inc. (TSX:GUD), through one of its wholly-owned subsidiaries (“Knight”), announced today that it has issued an additional secured loan of US$10 million to Synergy CHC Corp. (OTCQB:SNYR) (“Synergy”). The funds will be used to support product acquisitions as well as for general working capital purposes.
The additional secured loan of US$10 million bears interest at 10.5% per annum and matures on August 9, 2020. As part of the transaction, Knight shall receive a success fee paid at maturity, plus other consideration. Moreover, the agreement provides that subject to certain conditions, Knight may issue up to an additional US$20 million of secured debt financing to Synergy at substantially similar terms to support future acquisitions.
In 2015, Knight issued two secured loans to Synergy totalling US$11.5 million to support the acquisition of FOCUSFactor and Flat Tummy Tea, two proven consumer healthcare brands. The 2015 loans have a current remaining balance of US$3.1 million and are scheduled to be fully repaid by January 20, 2018. Knight also holds 17.6 million of Synergy’s common shares outstanding, issued to Knight in conjunction with the 2015 loans and pursuant to a subsequent warrant-share swap. Knight also holds the exclusive distribution rights to all of Synergy’s brands for Canada, Israel, Romania, Russia and Sub-Saharan Africa.
“We are now well positioned to leverage our existing digital innovations and distribution relationships to continue growing both organically and by further acquisition,” said Jack Ross, CEO of Synergy. “We are so thankful to have an incredible and supportive partner like Knight.”
“We are proud to have played a small part of Synergy’s tremendous growth over the past two years from zero to 30M+ in revenue,” said Jonathan Ross Goodman, CEO of Knight Therapeutics Inc. “We look forward to supporting Synergy’s proven strategy of acquiring and developing best-in-class consumer health and beauty brands.”
About Synergy CHC Corp.
Synergy CHC Corp. is a consumer health and beauty company that is in the process of building a portfolio of best-in-class consumer product brands. Synergy’s strategy is to grow its portfolio both organically and by further acquisition. Synergy’s diversified portfolio includes FOCUSFactor®, Neuragen®, Hand MD®, Flat Tummy Tea®, Sneaky Vaunt®, and Per-fekt Beauty®. For the year ended December 31, 2016 Synergy reported revenue of US$34.8 million. For more information, please visit www.synergychc.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.