Melinta Therapeutics Announces Closing of Initial $75 Million Vatera Convertible Loan Funding
February 25 2019 - 7:15AM
– Amendment to Deerfield Facility Agreement
Becomes Effective –
Melinta Therapeutics, Inc. (NASDAQ: MLNT), a commercial-stage
company focused on the development and commercialization of novel
antibiotics to treat serious bacterial infections, today announced
the closing and receipt of the initial $75 million disbursement
under the previously announced convertible loan facility from
Vatera Healthcare Partners LLC on February 22, 2019. In addition,
the previously announced amendment to the facility agreement with
funds managed by Deerfield Management Company, L.P. (collectively,
“Deerfield”) also became effective.
The Company also announced that John H. Johnson has been
appointed permanent chief executive officer. Mr. Johnson had been
serving as interim chief executive officer since October 2018 and
will continue to serve on the Company’s board of directors.
“We are pleased to have reached this important milestone as we
continue to take action to strengthen our financial position,” said
Mr. Johnson. “I am honored to continue in the CEO role on a
permanent basis. We look forward to providing additional details on
our initiatives to position the Company toward achieving profitable
growth and value creation when we report fourth quarter and full
year earnings.”
Melinta will host a conference call and live webcast on
Wednesday, March 13, 2019 at 4:30 p.m. ET to discuss its fourth
quarter and full year 2018 financial results and provide a business
update. The Company will provide conference call and webcast
details at a later date.
About Melinta TherapeuticsMelinta Therapeutics,
Inc. is the largest pure-play antibiotics company, dedicated to
saving lives threatened by the global public health crisis of
bacterial infections through the development and commercialization
of novel antibiotics that provide new therapeutic solutions. Its
four marketed products include Baxdela® (delafloxacin), Vabomere®
(meropenem and vaborbactam), Orbactiv® (oritavancin), and Minocin®
(minocycline) for Injection. This portfolio provides Melinta with
the unique ability to provide providers and patients with a range
of solutions that can meet the tremendous need for novel
antibiotics treating serious infections. Visit www.melinta.com for
more information.
Forward Looking StatementsCertain statements in
this communication constitute “forward-looking statements” within
the meaning of Section 27A of the Securities Act and Section 21E of
the Securities Exchange Act and are usually identified by the use
of words such as “anticipates,” “believes,” “estimates,” “expects,”
“intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,”
and variations of such words or similar expressions. We intend
these forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in Section 27A
of the Securities Act and Section 21E of the Securities Exchange
Act and are making this statement for purposes of complying with
those safe harbor provisions. These forward-looking statements
reflect our current views about our plans, intentions,
expectations, strategies and prospects, which are based on the
information currently available to us and on assumptions we have
made and include statements regarding: expectations with respect to
our financial position, results and performance. Although we
believe that our plans, intentions, expectations, strategies and
prospects as reflected in or suggested by those forward-looking
statements are reasonable, we can give no assurance that the plans,
intentions, expectations, strategies or prospects will be attained
or achieved. Furthermore, actual results may differ materially from
those described in the forward-looking statements and will be
affected by a variety of risks and factors that are beyond our
control.
Risks and uncertainties for Melinta include, but are not limited
to, the fact that we have incurred significant operating losses
since inception and will incur continued losses for the foreseeable
future; our limited operating history; our need for future capital
and risks related to our ability to obtain additional capital to
fund future operations; risks related to the satisfaction of the
closing conditions for the remaining two disbursements under the
loan agreement with Vatera, including any consequences of a failure
to close on the two disbursements under the Vatera loan financing;
risks related to compliance with the covenants under our facilities
with Vatera and Deerfield; uncertainties of cash flows and
inability to meet working capital needs as well as other
milestones, royalty and payment obligations, including as a result
of the outcome of the pending litigation with respect to, and any
requirement to make, payments potentially due to The Medicines
Company; risks that may arise from the consummation of the Vatera
loan financing and the effectiveness of the amendment to the
Deerfield facility agreement, including potential dilution to our
stockholders and the fact that Vatera will beneficially own a
substantial portion of our common stock; the fact that our
independent registered public accounting firm’s report on the
Company’s 2016 and 2017 financial statements contains (and that the
report on the Company’s 2018 financial statements may contain) an
explanatory paragraph that states that our recurring losses from
operations and our need to obtain additional capital raises
substantial doubt about our ability to continue as a going concern;
our substantial indebtedness; risks related to the commercial
launches of our products and our inexperience as a company in
marketing drug products; the degree of market acceptance of our
products among physicians, patients, health care payors and the
medical community; the pricing we are able to achieve for our
products; failure to obtain and sustain an adequate level of
reimbursement for our products by third-party payors; inaccuracies
in our estimates of the market for and commercialization potential
of our products; failure to maintain optimal inventory levels to
meet commercial demand for any of our products; risks that our
competitors are able to develop and market products that are
preferred over our products; our dependence upon third parties for
the manufacture and supply of our marketed products; failure to
achieve the benefits of our recently completed transactions with
Cempra and The Medicines Company; failure to establish and maintain
development and commercialization collaborations; uncertainty in
the outcome or timing of clinical trials and/or receipt of
regulatory approvals for our product candidates; undesirable side
effects of our products; failure of third parties to conduct
clinical trials in accordance with their contractual obligations;
our ability to identify, develop, acquire or in-license products;
difficulties in managing the growth of our company; the effects of
recent comprehensive tax reform; risks related to failure to comply
with extensive laws and regulations; product liability risks
related to our products; failure to retain key personnel; inability
to obtain, maintain and enforce patents and other intellectual
property rights or the unexpected costs associated with such
enforcement or litigation; risks relating to third party
infringement of intellectual property rights; our ability to
maintain effective internal control over financial reporting;
unfavorable outcomes in any of the class action and shareholder
derivative lawsuits currently pending against the Company; and the
fact that a substantial number of shares of common stock may be
sold into the public markets by one or more of our large
stockholders in the near future. Many of these factors that will
determine actual results are beyond Melinta’s ability to control or
predict.
Other risks and uncertainties are more fully described in our
Annual Report on Form 10-K for the year ended December 31, 2017,
our Revised Definitive Proxy Statement filed January 29, 2019, and
in other filings that Melinta makes and will make with the SEC.
Existing and prospective investors are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date hereof. The statements made in this press release speak
only as of the date stated herein, and subsequent events and
developments may cause our expectations and beliefs to change.
While we may elect to update these forward-looking statements
publicly at some point in the future, we specifically disclaim any
obligation to do so, whether as a result of new information, future
events or otherwise, except as required by law. These
forward-looking statements should not be relied upon as
representing our views as of any date after the date stated
herein.
For More Information:
Media Inquiries:Lindsay RoccoElixir Health
Public Relations+1
862-596-1304lrocco@elixirhealthpr.com
Investor Inquiries:Susan BlumMelinta
Therapeutics(212) 355-4449
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