Acerus Pharmaceuticals Corporation (OTCMKTS:ASPCF) is moving in a range after signing an amendment agreement with First Generation Capital Inc. to increase the current subordinated loans facility to $25 million from $15 million.
Trading Data
On Monday, ASPCF stock ended flat at $0.0230 with more than 15.87K shares, compared to its average volume of 8.4K shares. The stock has moved within a range of $0.0230 – 0.0230 after opening trade at $0.0231.
Acerus Announces Amendments to Loan Facilities
First Generation is a company affiliated with Acerus Board of Directors Chairman. The increase in the loan facility will be available to Acerus through a way of one or several advances as per the secured grid promissory note, given that such advances will be effected before February 1 next year.
Notably, the Loan Facility will be subordinated to a senior loan facility with SWK Funding LLC and carries an 85 per year interest rate. As per the inter-creditor and subordination agreement terms between SWK and First Generation, the facility is repayable on December 31, 2024. Notably, the loan is repayable in part or in full without any penalty after full repayment to SWK. So, investors should keep an eye on ASPCF in the coming weeks.
Key Quote
“While the Company continues to execute on a strategy that emphasizes expanding NATESTO® access in the United States, we appreciate the flexibility of First Generation in providing funds to ensure such plans proceed unhindered,” said Ed Gudaitis, President and Chief Executive Officer of Acerus. “This financing, and the success of our rollout, bolster the Company’s outlook as we turn the corner on 2022.”
Technical Data
ASPCF stock is trading below the 20-Day and 50-Day Moving averages of $0.0253 and $0.0284 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0363. The stock is down 23% in the past month.
