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Crescita Secures Line of Credit with the Royal Bank of Canada Following Repayment in Full of Knight Therapeutics Loan
Crescita Secures Line of Credit with the Royal Bank of Canada Following Repayment in Full ...
About this update from Crescita Therapeutics, Inc.
[{"type":"text","content":"\n\n\n\nCrescita Secures Line of Credit with the Royal Bank of Canada Following Repayment in Full of Knight Therapeutics Loan\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nLaval, QC, Jan. 22, 2020\n\n\n\nLaval, QC, Jan. 22, 2020 /CNW/ - Crescita Therapeutics Inc. (TSX: CTX) (OTC US: CRRTF) (\"Crescita\" or the \"Company\"), a commercial dermatology company with manufacturing capabilities and a portfolio of non-prescription skincare products and prescription drug products for the treatment and care of skin conditions, diseases and their symptoms, today announced that it has secured a $3.5 million revolving demand operating credit facility (the \"Facility\") with the Royal Bank of Canada (\"RBC\") following the repayment in full of its outstanding long-term debt of $3.6 million owed to Knight Therapeutics Inc. (the \"Knight Loan\"). \n\n \n \n\n \nThe Facility can be drawn by Crescita for working capital requirements and general corporate purposes, and bears interest at a low single-digit premium to RBC's Prime Rate. As is customary for a credit facility of this nature, loans drawn on the Facility will be secured by a first ranking charge in favour of RBC over the Company's accounts receivable and inventories. Drawings after the first $1.0 million on the Facility will be limited to a percentage of the Company's then outstanding accounts receivable and inventory. The closing of the Facility remains subject to the steps required to grant RBC a first-ranking charge over the Company's accounts receivable and inventories. Subject to the satisfaction of such condition, the Facility is expected to be available in the first quarter of 2020.\n\"The repayment in full of the Knight Loan represents an important step in improving our balance sheet and is a good use of our cash at this time. This leaves us only with the convertible debentures which we believe will be converted to equity over time,\" commented Jose DaRocha, Crescita's Chief Financial Officer. \"We are also very pleased to develop a closer relationship with RBC by establishing this operating line...