MISSISSAUGA, ON, March 1,
2023 /CNW/ - Feb 28,
2023 - Cipher Pharmaceuticals Inc. (TSX: CPH) ("Cipher"
or "the Company") today announced completion and closing of
a new credit facility (the "Credit Facility") with Royal Bank of
Canada (RBC).
The Credit Facility provides Cipher with up to US$35 million, which is primarily intended to
support the Company's future M&A growth strategy and may also
be drawn upon for general corporate purposes and working capital
requirements.
The Credit Facility is structured as a US$15 million Senior Secured Revolving Term Loan
(the "Term Loan") with an additional accordion option to be
increased by US$10 million.
Additionally, the Credit Facility has a US$10 million Senior Secured Revolving Credit
Facility (the "Revolving Loan") for general corporate
purposes and working capital requirements. The initial term of the
Term Loan is 3 years and the Revolving Loan is payable on demand.
The Credit Facility bears interest at market prevailing rates once
drawn upon.
Craig Mull, Interim CEO
commented, "Over the past few years, Cipher has made
substantial progress to optimize its cost structure, generate solid
earnings, drive cash flow and strengthen the balance sheet. With a
solid foundation now in place, we are pleased to improve our access
to capital through this favourable, non-dilutive Credit Facility.
This Credit Facility will provide Cipher with additional
operational and financial flexibility and enable us to act quickly
to take advantage of current market conditions to drive our next
phase of growth."
Bryan Jacobs, CFO
commented, "I am pleased to announce our access to capital through
this relationship with RBC. The Credit Facility, in addition to
cash on hand, greatly expands our reach in future M&A
opportunities. Both Craig and I are focused on the next phase of
growth, and having immediate access to capital will position Cipher
to be opportunistic and quick to move on M&A transactions."
As of September 30, 2022, the
Company had US$27.5 million in cash
on hand and no outstanding debt.
About Cipher Pharmaceuticals Inc.
Cipher Pharmaceuticals (TSX: CPH) is a specialty pharmaceutical
company with a robust and diversified portfolio of commercial and
early to late-stage products. Cipher acquires products that fulfill
unmet medical needs, manages the required clinical development and
regulatory approval process, and currently markets those products
either directly in Canada or indirectly through partners
in Canada, the U.S., and South America. For more
information, visit www.cipherpharma.com.
Forward-Looking Statements
This document includes forward-looking statements within the
meaning of applicable securities laws. These forward-looking
statements include, among others, statements with respect to
potential M&A opportunities and the Company's growth plans, as
well as statements with respect to our beliefs, plans,
expectations, anticipations, estimates and intentions. The words
"may", "will", "could", "should", "would", "suspect", "outlook",
"believe", "plan", "anticipate", "estimate", "expect", "intend",
"forecast", "objective", "hope" and "continue" (or the negative
thereof), and words and expressions of similar import, are intended
to identify forward-looking statements.
By their very nature, forward-looking statements involve
inherent risks and uncertainties, both general and specific, which
give rise to the possibility that predictions, forecasts,
projections and other forward-looking statements will not be
achieved. Certain material factors or assumptions are applied in
making forward-looking statements and actual results may differ
materially from those expressed or implied in such statements. We
caution readers not to place undue reliance on these statements as
a number of important factors, many of which are beyond our
control, could cause our actual results to differ materially from
the beliefs, plans, objectives, expectations, anticipations,
estimates and intentions expressed in such forward-looking
statements. These factors include, but are not limited to, the
extent and impact of the coronavirus (COVID-19) outbreak on our
business including any impact on our contract manufacturers and
other third party service providers, our ability to enter into
development, manufacturing and marketing and distribution
agreements with other pharmaceutical companies and keep such
agreements in effect; our dependency on a limited number of
products; our dependency on protection from patents that will
expire; integration difficulties and other risks if we acquire or
in-license technologies or product candidates; reliance on third
parties for the marketing of certain products; the product approval
process is highly unpredictable; the timing of completion of
clinical trials, regulatory submissions and regulatory approvals;
reliance on third parties to manufacture our products and events
outside of our control that could adversely impact the ability of
our manufacturing partners to supply products to meet our demands;
we may be subject to future product liability claims; unexpected
product safety or efficacy concerns may arise; we generate license
revenue from a limited number of distribution and supply
agreements; the pharmaceutical industry is highly competitive;
requirements for additional capital to fund future operations;
products in Canada may be subject
to pricing regulation; dependence on key managerial personnel and
external collaborators; no assurance that we will receive
regulatory approvals in the U.S., Canada or any other jurisdictions and current
uncertainty surrounding health care regulation in the U.S.; certain
of our products are subject to regulation as controlled substances;
limitations on reimbursement in the healthcare industry; limited
reimbursement for products by government authorities and
third-party payor policies; products may not be included on list of
drugs approved for use in hospitals; hospital customers may make
late payments or not make any payments; various laws pertaining to
health care fraud and abuse; reliance on the success of strategic
investments and partnerships; the publication of negative results
of clinical trials; unpredictable development goals and projected
time frames; rising insurance costs; ability to enforce
covenants not to compete; risks associated with the industry in
which we operate; we may be unsuccessful in evaluating material
risks involved in completed and future acquisitions; we may be
unable to identify, acquire or integrate acquisition targets
successfully; legacy risks from operations conducted in the U.S.;
inability to meet covenants under our long term debt arrangement;
compliance with privacy and security regulation; our policies
regarding returns, allowances and chargebacks may reduce revenues;
certain current and future regulations could restrict our
activities; additional regulatory burden and controls over
financial reporting; reliance on third parties to perform certain
services; general commercial litigation, class actions, other
litigation claims and regulatory actions; the difficulty for
shareholders to realize in the United
States upon judgments of U.S. courts predicated upon civil
liability of the Company and its directors and officers who are not
residents of the United States;
the potential violation of intellectual property rights of third
parties; our efforts to obtain, protect or enforce our patents and
other intellectual property rights related to our products; changes
in U.S., Canadian or foreign patent laws; litigation in the
pharmaceutical industry concerning the manufacture and supply of
novel and generic versions of existing drugs; inability to protect
our trademarks from infringement; shareholders may be further
diluted if we issue securities to raise capital; volatility of our
share price; the fact that we have a significant shareholder; we do
not currently intend to pay dividends; our operating results may
fluctuate significantly; and our debt obligations will have
priority over the common shares of the Company in the event of a
liquidation, dissolution or winding up.
We caution that the foregoing list of important factors that may
affect future results is not exhaustive. When reviewing our
forward-looking statements, investors and others should carefully
consider the foregoing factors and other uncertainties and
potential events. Additional information about factors that may
cause actual results to differ materially from expectations, and
about material factors or assumptions applied in making
forward-looking statements, may be found in the "Risk Factors"
section of the Company's Annual Information Form for the year ended
December 31, 2021, and elsewhere in
our filings with Canadian securities regulators. Except as required
by Canadian securities law, we do not undertake to update any
forward-looking statements, whether written or oral, that may be
made from time to time by us or on our behalf; such statements
speak only as of the date made. The forward-looking statements
included herein are expressly qualified in their entirety by this
cautionary language.
SOURCE Cipher Pharmaceuticals Inc.