Lending

Medexus Announces US $ 20 Million Asset-Based Credit

TORONTO, CHICAGO and MONTREAL, May 07, 2020 (GLOBE NEWSWIRE) – Medexus Pharmaceuticals Inc. (the “Company” or “Medexus”) (TSX-V: MDP, OTCQB: PDDPF) announced today that the Company has entered into a definitive credit agreement with a syndicate of lenders appointed by MidCap Financial Trust (“MidCap Financial”) in respect of a secured revolving credit facility based on assets of a duration of 38 months (the “ABL Facility”).

The ABL facility consists of a revolving commitment of US $ 20 million (subject to the borrowing base) and an accordion of US $ 10 million uncommitted. ABL facility borrowings bear interest at one-month LIBOR plus 3.95%, subject to a LIBOR floor of 1.50%. Interest is payable monthly in arrears on the first business day of each month. The Company and each of its subsidiaries are the borrowers under the ABL Facility (each, a “Borrower” and collectively, the “Borrowers”), and each Borrower is jointly and severally liable for the obligations of each other Borrower under the ABL facility.

The initial advance under the ABL facility was used by the Company to repay US $ 10 million of the outstanding principal under the US $ 20 million guaranteed term loan entered into by the borrowers on February 28, 2020 (the ” term loan ”). The interest rate on the outstanding ABL facility is 255 basis points lower than that on the term loan. After this repayment, a principal amount of approximately US $ 10 million remains unpaid under the term loan.

The ABL Facility is secured by a first ranking security interest from each Borrower on all of its current and subsequently acquired personal property and is subject to a creditors agreement with MidCap Financial, in its capacity as administrative agent under the Term Loan.

Ken d’Entremont, Chairman and CEO of the Company, said: “We are very pleased to enter into this credit agreement led by MidCap Financial as it further improves our liquidity and strengthens our financial flexibility. We believe that our ability to secure such favorable terms, including a significantly lower interest rate than the term loan, reflects the confidence of our lenders and the strength of our business. The cash flow from our strong organic growth and our recent accretive acquisition make debt an attractive option to provide liquidity while minimizing dilution to maximize shareholder value.

About Medexus Pharmaceuticals Inc.

Medexus is a leading specialty pharmaceutical company with a strong North American business platform. The company’s vision is to provide the best healthcare products to healthcare professionals and patients, through our core values ​​of quality, innovation, customer service and teamwork. Medexus Pharmaceuticals focuses on the therapeutic areas of autoimmune diseases, hematology and allergies. The Company’s main products are: Rasuvo ™ and Metoject®, a unique formulation of methotrexate (automatic pen and pre-filled syringe) designed to treat rheumatoid arthritis and other autoimmune diseases; IXINITY®, a recombinant factor IX intravenous therapeutic agent for use in patients 12 years of age or older with hemophilia B – an inherited bleeding disorder characterized by a deficiency of coagulation factor IX in the blood, which is required to control bleeding; and Rupall®, an innovative prescription allergy medication with a unique mode of action.

For more information, please contact:
Ken d’Entremont, Chief Executive Officer
Médexus Pharma inc.
Phone. : 905-676-0003
E-mail: [email protected]

Roland Boivin, Chief Financial Officer
Médexus Pharma inc.
Phone. : 514-762-2626 ext. 202
E-mail: [email protected]

Investor Relations (United States):
Crescendo Communications, LLC
Phone. : + 1-212-671-1020
E-mail: [email protected]

Investor Relations (Canada):
Franck Candido
Direct financial strategies and communication inc.
Phone: 514-969-5530
E-mail: [email protected]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking statements

Certain statements made in this press release contain forward-looking information within the meaning of applicable securities laws (“forward-looking statements“). The words “anticipates”, “believes”, “expects”, “will”, “plans” and similar expressions are often intended to identify forward-looking statements, although not all forward-looking statements contain these words. identification. Specific forward-looking statements contained in this press release include, without limitation, statements regarding the impact of the ABL Facility on the liquidity and financial flexibility of the Company and the soundness of the Company’s business, as reflected the conditions of the ABL. Establishment. These statements are based on factors or assumptions that have been applied in drawing a conclusion or making a forecast or projection, including assumptions based on historical trends, current conditions and expected future developments. Because forward-looking statements relate to future events and conditions, by their very nature they require the making of assumptions and involve inherent risks and uncertainties. The Company cautions that while the assumptions are believed to be reasonable under the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set forth in the forward-looking statements. Significant risk factors include: future capital requirements and dilution; protection of intellectual property and risks of counterfeiting; competition (including the potential for generic competition); dependence on key management personnel; the Company’s ability to implement its business plan; the Company’s ability to leverage its U.S. and Canadian infrastructure to promote further growth, including with respect to the infrastructure of Medexus Inc., Medac Pharma, Inc. and Aptevo BioTherapeutics LLC and the potential benefits that the Company s ‘waits to draw; regulatory approval by health authorities in Canada and the United States; reimbursement of products by third party payers; patent litigation or patent expiration; risk of litigation; volatility of stock prices; government regulations; potential third party claims; the risks associated with the COVID-19 pandemic and any other risk factor indicated in the most recent management report of the Company under the heading “Risk factors and risk management” and elsewhere in the other information documents of the Company filed with applicable Canadian securities regulatory authorities from time to time. With respect to the COVID-19 pandemic, the third parties on which the Company relies, including its manufacturers, suppliers, licensors and / or distributors, operate around the world and are exposed to a number of global and regional risks beyond the control of the Company. , including, but not limited to those related to the COVID-19 pandemic. As the COVID-19 pandemic continues or increases in severity or results in extensive or prolonged travel, business or other restrictions, it could negatively impact the Company by causing operational disruptions, d procurement or otherwise, including creating difficulties in the execution of the Company’s marketing plans. . In addition, liquidity and volatility, credit availability and general market and financial conditions could change at any time accordingly. Any of these events, singly or in combination, could have a material adverse effect on the Company’s business and could have a material adverse effect on the Company and its financial results. In view of these risks, one should not place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except as specifically required by law, the Company assumes no obligation to update forward-looking statements to reflect new information, subsequent or otherwise.

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