Acura obtains $620,000 bridge funding, extends maturity on previous loans

By Jennifer Chiou

New York, Oct. 20 - Acura Pharmaceuticals, Inc. said it secured $620,000 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.

The lenders have agreed to change the maturity date on all previous bridge loans to Dec. 1 from Nov. 1 and before that, Oct. 1, 2006.

The loan bears an annual interest rate of 10%, is secured by a lien on all assets of Acura and its subsidiary, matures on Dec. 1, 2006 and is senior to all other Acura debt. The loan permits the funding of additional cash amounts subject to agreement by Acura and the lenders.

The Palatine, Ill.-based pharmaceutical company has a total of $6.744 million in bridge loans outstanding and due on Dec. 1, 2006, and Acura has agreed that the lenders under its bridge loan agreements may roll over all or any portion of the principal and accrued interest outstanding into Acura's next equity financing of at least $10 million, subject to certain exceptions.

Acura said it will use the net proceeds from the loan to continue funding product development and licensing activities relating to OxyADF tablets and other product candidates utilizing its Aversion technology.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.