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HLS Therapeutics Acquires Portfolio of Four Royalty Interests
HLS Therapeutics Acquires Portfolio of Four Royalty Interests Canada NewsWire ...
About this update from Hls Therapeutics, Inc.
[{"type":"text","content":"HLS-Acquires4Royalty\n \n \n \n HLS Therapeutics Acquires Portfolio of Four Royalty Interests\n \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 Canada NewsWire\n \n \n TORONTO, Sept. 30, 2020\n \n \n \n \n \n \n HLS anticipates the portfolio will generate sustained and diversified revenues and cash flows\n \n \n \n \n Portfolio forecasted to generate an IRR in excess of 20% per year for at least ten years\n \n \n \n \n Compelling financial dynamics: purchase price reflects a multiple of 5.5X Adjusted EBITDA, assuming payment of all contingent milestone payments.\n \n \n \n \n Products are marketed by global blue-chip healthcare organizations that are leaders in their sectors\n \n \n \n \n \n TORONTO\n \n ,\n \n Sept. 30, 2020\n \n /CNW/ - HLS Therapeutics Inc. (\"HLS\" or the \"Company\") (TSX: HLS), a specialty pharmaceutical company focusing on central nervous system and cardiovascular markets, announces that it has acquired through CrownWheel Partners LLC (\"CrownWheel\"), a wholly-owned portfolio company of Longitude Capital, certain entities that hold the rights to a diversified portfolio (the \"Portfolio\") of royalty interests on global sales of four different products for upfront consideration of\n \n $30.8 million\n \n cash plus commercial performance milestone payments of up to\n \n $18.5 million\n \n . HLS is also assuming contingent payments of up to\n \n $10.0 million\n \n tied to regulatory milestones. All financial figures are in\n \n United States\n \n (\"U.S.\") dollars, unless otherwise stated.\n \n \n \n \n TRANSACTION HIGHLIGHTS\n \n \n \n \n \n \n Increased Diversification\n \n : the four non-correlated products expand the portfolio of foundational assets at HLS and diversify the Company's revenue, Adjusted EBITDA and cash flow.\n \n \n \n Stable Revenue in a Long-Duration Portfolio\n \n : three of the four products are in-market today and generated royalties of approximately\n \n $8.4 million\n \n over a trailing twelve-month period ended\n \n June 30, 2020\n \n . Royalties from the Portfolio are expected through calendar 2032 at a mi...