ATLANTA, April 25, 2014 /PRNewswire/ -- Alimera Sciences,
Inc. (NASDAQ: ALIM) (Alimera), a biopharmaceutical company that
specializes in the research, development and commercialization of
prescription ophthalmic pharmaceuticals, announced today that its
United Kingdom subsidiary, Alimera
Sciences Limited (Limited), has entered into a Loan and Security
Agreement with Hercules Technology Growth Capital, Inc. (NYSE:
HTGC) (Hercules) for a term loan in the principal amount of up to
$35 million. Under the agreement,
Hercules is advancing $10 million to
Limited and will advance the remaining $25
million in the event the U.S. Food and Drug Administration
(FDA) approves ILUVIEN® on or before
October 31, 2014 and certain other
conditions are satisfied.
The proceeds of the initial funding of $10 million under the term loan will be used to
pay off an existing term loan payable to Silicon Valley Bank (SVB)
and to provide additional working capital for general corporate
purposes. The $25 million
advance will be used to fund a $25
million milestone payment obligation that will be owed by
Alimera upon FDA approval of ILUVIEN. In connection with the
closing of the Hercules debt facility, Limited also terminated a
$15 million working capital line of
credit with SVB that had not been utilized.
"This debt facility strengthens our financial position for the
commercialization of ILUVIEN in the United Kingdom, Germany and France, and for possible expansion elsewhere
in Europe," said Dan Myers, Alimera's president and chief
executive officer. "Further, it is expected to provide the funding
necessary to fulfill our milestone obligation if ILUVIEN receives
FDA approval on or before October 31,
2014, and is intended to mitigate the need to seek
additional financing for this purpose."
Interest on outstanding borrowing under the term loan is payable
at the rate of 10.9% per annum. The term loan, which matures on
May 1, 2018, provides for interest
only payments for the first 18 months, followed by 30 equal monthly
payments of principal and interest. Once certain revenue thresholds
are reached, the interest-only period may be extended to 36 months,
followed by 12 equal monthly payments of principal and
interest.
In connection with the term loan, Alimera issued Hercules a
warrant to purchase an aggregate of up to 285,016 shares of common
stock at an exercise price of $6.14
per share.
About Hercules Technology Growth Capital, Inc.
Hercules Technology Growth Capital, Inc. (NYSE: HTGC) is the
leading specialty finance company focused on providing senior
secured loans to venture capital-backed companies in
technology-related markets, including technology, biotechnology,
life science, and energy & renewable technology industries, at
all stages of development. Since inception (December 2003), Hercules has committed more than
$4.2 billion to over 270 companies
and is a lender of choice for entrepreneurs and venture capital
firms seeking growth capital financing. Companies interested in
learning more about financing opportunities should contact
info@htgc.com, or call 650-289-3060.
About Alimera Sciences, Inc.
Alimera Sciences, Inc., based in Alpharetta, Georgia, is a biopharmaceutical
company that specializes in the research, development and
commercialization of prescription ophthalmic pharmaceuticals.
Forward Looking Statements
This press release contains "forward-looking statements," within
the meaning of the Private Securities Litigation Reform Act of
1995, regarding, among other things, the regulatory status of
ILUVIEN in the United States,
Alimera's European commercial operations and strategy and plans
regarding the use of the proceeds of the term loan. Such
forward-looking statements are based on current expectations and
involve inherent risks and uncertainties, including factors that
could delay, divert or change any of them, and could cause actual
results to differ materially from those projected in its
forward-looking statements. Meaningful factors which could cause
actual results to differ include, but are not limited to, delay in
or failure to obtain FDA approval of ILUVIEN and failure to
commercialize ILUVIEN in additional European countries, as well as
other factors discussed in the "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" sections of Alimera's Annual Report on Form 10-K for
the year ended December 31, 2013,
which is on file with the Securities and Exchange Commission (SEC)
and available on the SEC's website at www.sec.gov. In addition to
the risks described above and in Alimera's Annual Report on Form
10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K
and other filings with the SEC, other unknown or unpredictable
factors also could affect Alimera's results. There can be no
assurance that the actual results or developments anticipated by
Alimera will be realized or, even if substantially realized, that
they will have the expected consequences to, or effects on,
Alimera. Therefore, no assurance can be given that the outcomes
stated in such forward-looking statements and estimates will be
achieved.
All forward-looking statements contained in this press release
are expressly qualified by the cautionary statements contained or
referred to herein. Alimera cautions investors not to rely too
heavily on the forward-looking statements Alimera makes or that are
made on its behalf. These forward-looking statements speak only as
of the date of this press release (unless another date is
indicated). Alimera undertakes no obligation, and specifically
declines any obligation, to publicly update or revise any such
forward-looking statements, whether as a result of new information,
future events or otherwise.
Investor Contact:
ICR, LLC
John Mills
646-277-1254
John.Mills@icrinc.com
SOURCE Alimera Sciences, Inc.