Acerus Pharmaceuticals ups First Generation facility by $2.1 million

By Marisa Wong

Los Angeles, June 24 – Acerus Pharmaceuticals Corp. announced it entered into an amending agreement with First Generation Capital Inc. to increase its existing secured loan facility to $37,945,000 from $35,845,000.

This increase was made available to Acerus by way of a single advance of $2.1 million on June 23 under a secured grid promissory note with First Generation, according to a Friday press release.

The loan bears interest at 8% per annum and is repayable in full on Dec. 31, 2024 but can be prepaid in full or in part without penalty.

Proceeds from the facility will be used for ongoing general working capital.

In light of First Generation’s relationship to the chairman of the board of directors of Acerus, the independent members of the board met separately to consider and discuss the amendment to the facility. After a review by these independent board members, it was unanimously determined that entering into the loan amendment was in the best interests of Acerus.

Acerus said it continues to be actively engaged in the process of securing additional capital and expects to provide a progress update in the next few weeks.

The Toronto-based specialty pharmaceutical company is focused on the commercialization and development of prescription products mainly in the fields of urology and men’s health.

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