ProPhase Labs Announces $10 Million Unsecured Debt Financing
September 18 2020 - 8:00AM
ProPhase Labs, Inc. (NASDAQ: PRPH, www.ProPhaseLabs.com) today
announced that it has closed on a $10 million unsecured debt
financing. The Company has issued two unsecured, partially
convertible, promissory notes for an aggregate principal amount of
$10 million (the “Notes”).
Each Note is due and payable on the third
anniversary of the date on which the Note was funded (for each
Note, the “Closing Date”) and accrues interest at a rate of 10% per
year from the Closing Date, payable on a quarterly basis, until the
Note is repaid in full. The Company has the right to prepay the
Notes at any time after the 13 month anniversary of the Closing
Date upon providing written notice to the lenders, and may prepay
the Notes prior to such time with the consent of the lenders. The
lenders have the right, at any time, and from time to time, on and
after the 13 month anniversary of the Closing Date, to convert up
to an aggregate of $3 million of the Notes into common stock of the
Company at a conversion price of $3.00 per share. Repayment of the
Notes has been guaranteed by the Company’s wholly-owned subsidiary,
Pharmaloz Manufacturing, Inc.
The Company intends to use the proceeds from the
Notes for working capital and general corporate purposes, which may
include capital expenditures, product development and
commercialization expenditures, and acquisitions of companies,
businesses, technologies and products within and outside the
consumer products industry.
Ted Karkus, Chairman and CEO of the Company
stated “Prior to this financing, the Company already had
approximately $10 million in working capital, the majority of which
is in cash and cash equivalents (inclusive of the anticipated
proceeds from the previously announced pending sale of the
Company’s Doylestown, Pennsylvania facilities). With this
additional capital available to us, we can leverage our human
capital and other assets to pursue new and exciting business
opportunities and acquisitions.”
About the Company
We are a manufacturing and marketing company
with deep experience with OTC consumer healthcare products and
dietary supplements. We are engaged in the research, development,
manufacture, distribution, marketing and sale of OTC consumer
healthcare products and dietary supplements in the United States.
This includes the development and marketing of dietary supplements
under the TK Supplements® brand.
In addition, the Company also continues to
actively pursue acquisition opportunities for other companies,
technologies and products inside and outside the consumer products
industry. For more information visit us at
www.ProPhaseLabs.com.
Investor Contact
Ted Karkus, Chairman and CEOProPhase Labs,
Inc.(267) 880-1111
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