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Perceptive Advisors Closes up to $35MM Loan Facility for Agile Therapeutics

February 11, 2020, 08:00 AM
Filed Under: Healthcare

Agile Therapeutics, Inc., a women’s healthcare company, announced that it has entered into a senior secured term loan credit  facility with Perceptive Advisors to provide Agile with up to $35 million through term loans in three tranches.  $5 million was funded today after the satisfaction of customary closing conditions, $15 million will be available if Twirla® is approved by the U.S. Food and Drug Administration (“FDA”), and $15 million will be available upon the achievement of certain revenue milestones.  Agile is permitted to make interest only payments on the loan until February 2023.

“This strategic debt financing coupled with our current cash increases our balance sheet strength and positions us well to continue our commercialization strategy for Twirla®, with an expected FDA decision less than one week away,” stated Al Altomari, Chairman and Chief Executive Officer of Agile. Mr. Altomari continued, "We expect that our existing estimated cash on hand as of December 31, 2019, and the $20 million in loan proceeds which we would be eligible to receive upon the FDA’s approval of Twirla will allow us to fund our operations through the end of 2020. We are pleased to have the support from Perceptive, which is a recognized leader in growth capital financing."

“We are pleased to provide growth capital to support Agile’s strategy and are excited about the potential prospects for Twirla in the market,” said Sam Chawla, Portfolio Manager at Perceptive Advisors.

In connection with the credit agreement, Agile issued Perceptive warrants to purchase 1,400,000 shares of Agile common stock.  The per share exercise price for 700,000 shares is $3.74, which is equal to the 5 day volume weighted average price (“5 Day VWAP”) as of the trading day immediately prior to closing.  The per share exercise price for the remaining 700,000 shares of Agile common stock is $4.67, which is equal to 1.25 times the 5 Day VWAP.

Oppenheimer & Co. Inc. acted as the company’s sole financial adviser in connection with the loan facility.

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