MISSISSAUGA, ON, Aug. 24, 2017 /CNW/ - Nuvo Pharmaceuticals Inc. (Nuvo or the Company) (TSX:NRI), a commercial healthcare company with a portfolio of commercial products and pharmaceutical manufacturing capabilities, today announced that it has secured a $6.0 million operating revolving credit facility (Facility) with Royal Bank of Canada (RBC). The Facility is a standby Facility that can be drawn by Nuvo for working capital requirements and general corporate purposes. Nuvo has not currently drawn any amount of the Facility.
The Facility can be accessed by Canadian dollar denominated loans and U.S. dollar denominated loans that will bear interest at a low, single-digit premium to RBC's Prime Rate or RBC's U.S. Base Rate. As is customary for a credit facility of this nature, loans drawn on the Facility are secured by a first charge in favour of RBC over the Company's assets. Drawings on the Facility are limited to a percentage of the Company's then outstanding accounts receivable and inventory. The Company has the right to repay any balance owing under the Facility at any time without bonus interest or penalty.
"We are very pleased to develop a closer relationship with RBC by establishing this operating line of credit," said Mary-Jane Burkett, Nuvo's Vice-President and Chief Financial Officer. "While we have $20.0 million of cash and no debt as of the end of Q2 2017, the Facility increases our flexibility to fund our operations as we execute our plan to increase and diversify our revenue streams through product and business acquisitions."
About Nuvo Pharmaceuticals Inc.
Nuvo (TSX:NRI) is a commercial healthcare company with a portfolio of commercial products and pharmaceutical manufacturing capabilities. Nuvo has three commercial products that are available in a number of countries; Pennsaid® 2%, Pennsaid and the heated lidocaine/tetracaine patch. Pennsaid 2% is sold in the U.S. by Horizon Pharma plc (NASDAQ: HZNP) and is available for partnering in certain other territories around the world. Nuvo manufactures Pennsaid for the global market and Pennsaid 2% for the U.S. market at its U.S. Food and Drug Administration, Health Canada and E.U. approved manufacturing facility in Varennes, Québec. For additional information, please visit www.nuvopharmaceuticals.com.
This Press Release contains "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company's current beliefs, expectations and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control. Nuvo's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, readers should not rely on any of these forward-looking statements. Important factors that could cause Nuvo's actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the risk factors included in Nuvo's most recent Annual Information Form dated March 1, 2017 under the heading "Risks Factors", and as described from time to time in the reports and disclosure documents filed by Nuvo with Canadian securities regulatory agencies and commissions. These and other factors should be considered carefully and readers should not place undue reliance on Nuvo's forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to any such future results, levels of activity or achievements and none of Nuvo or any other person assumes responsibility for the accuracy and completeness of these forward-looking statements.
Any forward-looking statement made by the Company in this Press Release is based only on information currently available to it and speaks only as of the date on which it is made. Except as required by applicable securities laws, Nuvo undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
SOURCE Nuvo Pharmaceuticals Inc.
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