- Transaction to bridge to expected plasminogen
(RyplazimTM) revenues as well as other asset
monetization events
- Facility provides flexible drawdowns callable at Prometic's
request
Laval, Qc, Oct. 23, 2017 /PRNewswire/ -Prometic Life
Sciences Inc. (TSX: PLI) (OTCQX: PFSCF) ("Prometic") announced
today that it has entered into a binding letter of intent to secure
a USD $80 million (CAD $100 million) line of credit (the "Credit
Facility") from Structured Alpha LP ("SALP"), an affiliate of
Peter J. Thomson's investment firm,
Thomvest Asset Management Inc. The first two tranches can be drawn
within fifteen days of closing, with each additional tranche
becoming available on a monthly basis thereafter. Any amount drawn
from the Credit Facility will bear interest of 8.5% per annum and
will be repayable within two years from the entering into the
Credit Facility.
Stefan Clulow, Managing Director
and Chief Investment Officer of Thomvest Asset Management Inc.
said, "We are pleased to extend this Credit Facility to the
company, at what is clearly a pivotal time. Prometic is on
the cusp of delivering against several key milestones, and this
drawdown facility is designed to provide a flexible bridge to those
events".
"The scale and structure of this facility provides us with
significant operational and financial flexibility to continue with
our ongoing negotiations to monetize certain corporate
assets. Furthermore, the existing strong relationship with
Thomvest allows us to leverage our current security package to its
full effect", said Mr. Pierre
Laurin, Prometic's President and Chief Executive Officer.
"The flexibility provided by this Credit Facility also means the
company can draw only when required which allows our team to focus
on closing value-enhancing initiatives and create significant
enterprise value for Prometic and its stakeholders".
Commenting on the transaction, Mr. Bruce
Pritchard, Prometic's Chief Operating Officer and Chief
Financial Officer added, "We are confident that by securing this
credit facility, the company now has the means to fund itself, with
limited dilution to existing shareholders, to the point where it
will see revenues flowing from its sales of plasminogen
(RyplazimTM), as well as from asset monetization
events".
As partial consideration for establishing the Credit Facility,
Prometic will grant Structured Alpha LP an initial 10 million
warrants with an exercise price of CAD $1.70 per common share with a term expiring
June 30, 2026, alongside an
additional 44 million warrants at the same exercise price and term,
which will vest in tranches each time Prometic draws an additional
amount of USD $10 million (CAD
$12.5 million) under the Credit
Facility. Drawing on the first 4 tranches of USD $10 million (CAD $12.5
million) would each cause 5 million warrants to vest,
whereas the drawing on the second set of 4 tranches of USD
$10 million (CDN $12.5 million) would each cause 6 million
warrants to vest. The entering into of the Credit Facility is
subject to Prometic obtaining TSX approval and finalizing the
definitive documentation, which the parties expect to achieve on or
about November 30, 2017.
About Thomvest Asset Management Inc. And Structured Alpha
LP
Thomvest Asset Management Inc. is a Toronto-based investment management firm
controlled by Peter J. Thomson.
Structured Alpha LP is an affiliate of Thomvest Asset Management
Inc. that makes structured investments in companies that leverage
disruptive technologies and business models to pursue high-growth
commercial opportunities. We are committed to the success of our
entrepreneur partners. The capital we invest is our own, enabling
us to be more creative, flexible, strategic and patient than most
investors. It takes time to build great companies and Thomvest and
its affiliates are committed to supporting its entrepreneurs
throughout their journey. To learn more about Thomvest, please
visit us at www.thomvest.com.
About Prometic Life Sciences Inc.
Prometic Life Sciences Inc. (www.prometic.com) is a
long-established biopharmaceutical company with globally recognized
expertise in bioseparations, plasma-derived therapeutics and
small-molecule drug development. Prometic is active in
developing its own novel small-molecule therapeutic products
targeting unmet medical needs in the field of fibrosis, cancer and
autoimmune diseases/inflammation. A number of plasma-derived and
small molecule products are under development for orphan drug
indications. Prometic also offers its state-of-the-art technologies
for large-scale purification of biologics, drug development,
proteomics and the elimination of pathogens to a growing base of
industry leaders and uses its own affinity technology that provides
for highly efficient extraction and purification of therapeutic
proteins from human plasma in order to develop best-in-class
therapeutics and orphan drugs. Headquartered in Laval (Canada), Prometic has R&D facilities
in the UK, the U.S. and Canada, manufacturing facilities in the UK
and commercial activities in the U.S., Canada, Europe and Asia.
Forward Looking
Statements
This press release contains forward-looking statements about
Prometic's objectives, strategies and businesses that involve risks
and uncertainties. These statements are "forward-looking" because
they are based on our current expectations about the markets we
operate in and on various estimates and assumptions. Actual events
or results may differ materially from those anticipated in these
forward-looking statements if known or unknown risks affect our
business, or if our estimates or assumptions turn out to be
inaccurate. Such risks and assumptions include, but are not limited
to, Prometic's ability to develop, manufacture, and successfully
commercialize value-added pharmaceutical products, the availability
of funds and resources to pursue R&D projects, the successful
and timely completion of clinical studies, the ability of Prometic
to take advantage of business opportunities in the pharmaceutical
industry, uncertainties related to the regulatory process and
general changes in economic conditions. You will find a more
detailed assessment of the risks that could cause actual events or
results to materially differ from our current expectations in
Prometic's Annual Information Form for the year ended December 31, 2016, under the heading "Risk and
Uncertainties related to Prometic's business". As a result,
we cannot guarantee that any forward-looking statement will
materialize. We assume no obligation to update any forward-looking
statement even if new information becomes available, as a result of
future events or for any other reason, unless required by
applicable securities laws and regulations. All amounts are
in Canadian dollars unless indicated otherwise.
SOURCE ProMetic Life Sciences Inc.