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Fennec Pharmaceuticals Announces Up to $45 Million Investment From Petrichor
~ Under the Terms of the Investment Agreement, $5 Million to be Funded on initial closing and $20 Million to be Funded Upon Potential FDA Approval of
About this update from Fennec Pharmaceuticals Inc.
[{"type":"text","content":"~ Under the Terms of the Investment Agreement, $5 Million to be Funded on initial closing and $20 Million to be Funded Upon Potential FDA Approval of PEDMARKTM ~ ~ Fennec Has the Potential to Access an Additional $20 Million Prior to December 31, 2023 ~ ~ Funding to Support the Potential Commercialization of PEDMARKTM to Reduce the Risk of Ototoxicity Associated with Cisplatin in Pediatric Patients with Localized, Non-Metastatic, Solid Tumors ~ RESEARCH TRIANGLE PARK, N.C., Aug. 01, 2022 (GLOBE NEWSWIRE) -- Fennec Pharmaceuticals Inc. (NASDAQ:FENC; TSX: FRX), a specialty pharmaceutical company, today announced up to a US$45 million investment from Petrichor Healthcare Capital Management (\"Petrichor\"). Under the terms of the investment agreement: Subject to customary closing conditions, Petrichor will purchase $5 million of senior secured promissory notes which are convertible into Fennec common shares at a price per share of $8.11 based upon a 20% premium to the 5-day VWAP immediately prior to announcement of the investment. The Company intends to repay in full its existing secured indebtedness with Bridge Bank before the first closing;An additional $20 million to be funded upon the potential U.S. Food and Drug Administration (FDA) approval of PEDMARKTM by September 30, 2022 and satisfaction of other closing conditions. Fennec upon mutual agreement with Petrichor may draw up to $20 million of additional financing under the investment agreement; andThe notes have a five-year term and bear interest at a rate equal to the US Prime Rate plus 4.5%, with 3.5% of the interest paid in kind for the first twenty-four months. Rosty Raykov, chief executive officer of Fennec, said, “Petrichor is a premier healthcare-dedicated investment firm who has worked with us to structure this transaction, which provides substantial capital and flexibility to support the launch and commercialization of PEDMARKTM, if approved. We appreciate the confidence that Petrichor is demonstrating in Fennec and the potential market opportunity for PEDMARKTM as we await a decision from the FDA by the September 23, 2022 PDUFA target action date.” Tadd Wessel, Founder and Managing Partner of Petrichor, said, “We are pleased to partner with Fennec as they seek to commercialize PEDMARKTM. The Fennec team has a clear strategic vision and the potential to bring a transf...