- Proceeds to fund acquisition of Canadian rights to 3 growing
commercial stage drugs
- Acquisition allows Valeo to expand into Ophthalmology and
Allergy
- Licensing transactions to more than double Valeo's annual
revenues
- Provides financial flexibility to accelerate growth and
reach
profitability
MONTREAL, Aug. 2, 2022
/CNW Telbec/ - Valeo Pharma Inc. (TSX: VPH) (OTCQB: VPHIF) (FSE:
VP2) ("Valeo" or the "Company"), a growing Canadian
pharmaceutical company, is pleased to announce that, it has closed
a non-dilutive US$40 million Secured
Term Loan (the "Facility") from Sagard Healthcare
Partners.
The Facility is subject to the terms and conditions of a credit
agreement. Highlights of the agreement are as follows:
- Senior secured term loan of up to US$40
million.
- US$30 million fully funded on the
closing.
- Additional US$10 million
available for future in-licensing transactions and/or acquisitions
prior to December 31,
2023.
- Facility matures after 5 years from closing.
"We are thrilled to have the financial support of Sagard
Healthcare Partners, a sophisticated and knowledgeable healthcare
investor. Their support is a testament to the quality of our
commercial assets, the soundness of our business model and the
talented team we have at Valeo", said Steve
Saviuk, CEO. "This non-dilutive financing provides us with
the necessary financial flexibility to accelerate our growth,
deliver on defined value creation milestones and execute on our
ambitious corporate objectives."
"We are excited to support Valeo as it continues to build a
broad portfolio of commercial products", said David
MacNaughtan, Partner & Head of Sagard Healthcare Partners. "We
look forward to working with Valeo to advance its mission to become
a leading Canadian specialty pharmaceutical company and provide
Canadian healthcare professionals and patients with innovative
therapeutic solutions to improve quality of life."
The Company intends to use the proceeds of the Facility to (i)
fund the purchase price (including inventory transfers) for the
acquisition of the Canadian license rights to Xiidra and Simbrinza
from Novartis Pharmaceuticals Canada, (ii) fund the purchase price
(including inventory transfers) for the acquisition of the Canadian
license rights to Allerject from Kaléo, (iii) fund future
in-licensing transactions and/or acquisitions, and (iv) for general
corporate purposes.
Reedland Capital Partners, acting through Weild & Co.,
member FINRA|SIPC, served as financial advisor to Valeo in
connection with this transaction. For more information, please
visit www.reedland.com.
Special Event Webcast and
Conference Call
Valeo will host a conference call to discuss the US$40 million non-dilutive financing and new
products commercialization and supply transactions on Tuesday August 2, 2022, at 9.30am (ET). The telephone numbers to access the
conference call are 416-764-8659 and 1-888-664-6392. An audio
replay of the call will be available. The numbers to access the
audio replay are 416-764-8677 and 1-888-390-0541 using the
following access code (292407 #).
A live audio webcast of the conference call will be available
via: https://app.webinar.net/2EK7WNaoA0j
About Sagard Healthcare
Partners
Sagard Healthcare Partners is a wholly owned subsidiary of
Sagard, a multi-strategy
alternative asset manager with more than US$14 billion under management and professionals
located in Canada, the U.S. and
Europe. Sagard seeks attractive investment returns by
combining its entrepreneurial and disciplined culture with flexible
capital and a unique global network of portfolio companies, limited
partners, advisors and other valued relationships. As a firm,
Sagard operates platforms that
invest across five asset classes: venture capital, private equity,
private credit, real estate and healthcare royalties. Through its
ecosystem partners, Sagard also
engages in private wealth management and new venture creation.
About Valeo Pharma
Valeo Pharma is a pharmaceutical company dedicated to the
commercialization of innovative prescription products in
Canada with a focus on
Respirology/Allergy, Ophthalmology and Specialty Products.
Headquartered in Kirkland, Quebec,
Valeo Pharma has the full capability and complete infrastructure to
register and properly manage its growing product portfolio through
all stages of commercialization. For more information, please visit
www.valeopharma.com and follow us on LinkedIn and Twitter.
Forward Looking
Statements
This press release contains forward-looking statements about
Valeo Pharmas's objectives, strategies and businesses that involve
risks and uncertainties, including statements about the Offering,
the Concurrent Private Placement and the anticipated use of
proceeds therefrom. These statements are "forward-looking" because
they are based on our current expectations about the markets we
operate in and on various estimates and assumptions. Actual events
or results may differ materially from those anticipated in these
forward-looking statements if known or unknown risks affect our
business, or if our estimates or assumptions turn out to be
inaccurate.
SOURCE Valeo Pharma Inc.