Imprimis Pharmaceuticals, Inc., a pharmaceutical company focused on the development and commercialization of proprietary compounded drug formulations, today announced it has entered into a loan agreement with IMMY Funding LLC, an affiliate of Life Sciences Alternative Funding LLC (LSAF), a leading provider of debt capital to fund growth for commercial-stage life sciences companies. The agreement provides Imprimis with up to $15 million of available borrowing capacity.
Under the terms of the agreement, LSAF, through its affiliate, provided Imprimis with $10 million on the initial closing date of May 11, 2015. Up to an additional $5 million will be available to Imprimis, at its option, on or before May 11, 2016, subject to Imprimis achieving certain revenue milestones within 12 months of the initial closing date. The agreement has an initial term of up to five years and bears interest at 12.5% per annum with monthly interest-only payments for the first three years. The interest-only period may be reduced to twenty months if Imprimis fails to achieve certain minimum revenue or cash balance requirements. Imprimis intends to use the proceeds from the loan for working capital and general corporate purposes.
“We are pleased to have LSAF as our strategic financing partner. This funding will provide us with capital to execute on our business strategy, move towards profitability and continue to grow value for our stockholders,” stated Mark L. Baum, CEO of Imprimis. “We chose LSAF not only because of its ability to provide a debt financing structure that we believe is attractive and suited for our needs, but also because we respect and admire its extensive healthcare experience, thorough understanding of our business and strong belief in our long-term growth potential.”
Steve DeNelsky, President of Life Science Alternative Funding, added, “We are impressed with Imprimis’ progress to date and this funding should help accelerate the expansion of its growing ophthalmology business and bolster the commercialization efforts of its newly-launched urology franchise. The rapid adoption of Dropless Therapy since it was launched a year ago is impressive and we believe Imprimis is well-positioned to accelerate growth in both their ophthalmology and urology platforms. We have high regards for the Imprimis team and believe in their ability to achieve their vision of delivering high quality and innovative medicines to physicians and patients at affordable prices. The funding of Imprimis further highlights LSAF’s continued focus of providing non-dilutive capital to rapidly growing commercial-stage companies in the life sciences sector.”
Source: Imprimis Pharmaceuticals
Filed Under: Drug Discovery