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Aquestive Therapeutics Signs Royalty Monetization Agreement with Marathon Asset Management for up to $125 Million
Receives $40 million of proceeds at closing, with potential $25 million of additional proceeds by mid-2022Reduces outstanding debt to $51.5 million WARREN,
About this update from Aquestive Therapeutics, Inc.
[{"type":"text","content":"Receives $40 million of proceeds at closing, with potential $25 million of additional proceeds by mid-2022Reduces outstanding debt to $51.5 million WARREN, N.J., Nov. 03, 2020 (GLOBE NEWSWIRE) -- Aquestive Therapeutics, Inc. (NASDAQ: AQST), a pharmaceutical company focused on developing and commercializing differentiated products that address patients’ unmet needs and solve therapeutic problems, announced today that it has entered a royalty monetization agreement with an affiliate of Marathon Asset Management, a leading global investment firm (“Marathon”), that will result in proceeds to the Company of up to $125 million. In exchange for this funding, Marathon will be entitled to receive all royalties and other payments due under Aquestive’s license agreement with Sunovion Pharmaceuticals Inc. (“Sunovion”) as a result of Sunovion’s commercialization of KYNMOBI™ (apomorphine HCI) sublingual film for the acute, intermittent treatment of OFF episodes in patients with Parkinson’s disease. Net proceeds of the transaction will be used to repay certain senior notes and fund the Company’s ongoing development and commercialization of its proprietary product pipeline candidates, as well as for working capital purposes. KYNMOBI received approval from the U.S. Food and Drug Administration (FDA) on May 21, 2020. \n Under the terms of the agreement, Aquestive will receive $40 million at closing and is eligible to receive up to $85 million of contingent payments at various points, beginning as early as the fourth quarter of 2020, based on the achievement of certain worldwide royalty targets and certain other commercial milestones. The transaction is anticipated to close later this month. With the upfront net proceeds of the monetization, the Company will repay $22.5 million of senior notes, and issue $4.0 million of new senior notes in lieu of paying a prepayment premium on the early repayment of the senior notes, bringing outstanding senior notes to $51.5 million in the aggregate. In addition, the holders of the senior notes have extended to December 31, 2021 the Company’s ability to access, at the Company’s option, $30 million of senior notes re-openers under the Company’s senior debt indenture. The first $10 million senior notes re-opener represents a commitment of such amount by current holders of senior notes, contingent upon FDA approval...