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Acura secures additional financing, total bridge loans outstanding now at $5.6 million
By Lisa Kerner
Charlotte, N.C., Aug. 16 - Acura Pharmaceuticals, Inc. said it has secured gross proceeds of $450,000 under a term loan agreement with Essex Woodlands Health Ventures V, LP, Care Capital Investments II, LP, Care Capital Offshore Investments II, LP, Galen Partners III, LP, Galen Partners International III, LP and Galen Employee Fund III, LP
This latest loan brings the company's total bridge loans outstanding and due Oct. 1 to $5.6 million.
The lenders have agreed to change the maturity date on all previous bridge loans to Oct. 1, 2006, from September 2006.
Acura said the latest $450,000 loan bears an annual interest rate of 10% and is secured by a lien on all assets of the company and its subsidiary.
Proceeds will be used to continue funding product development and licensing activities related to OxyADF tablets and other product candidates using Acura's Aversion Technology.
Acura's current cash reserves, including the net proceeds from the loan, will fund product activities through mid-September.
In June, Acura secured $335,000 to fund activities through July, while in May the company secured $800,000 to fund operations through June. Acura received $1 million loan in June 2005 for operations through August 2005, according to a news release.
The company must raise additional financing or enter into collaboration agreements that will supply it with cash in order to continue operations after mid-September. Otherwise, Acura will be required to scale back or terminate operations and/or seek bankruptcy protection.
Acura is a pharmaceutical company located in Palatine, Ill.
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