Parnell Pharmaceuticals Holdings Ltd, a fully integrated pharmaceutical company focused on developing, manufacturing and commercializing innovative animal health solutions, announced that it has entered into a $20 million, senior secured, non-dilutive, term loan agreement with SWK Holdings. The Company intends to use the loan proceeds to repay the previously held $11 million term loan with MidCap Financial and to fund R&D programs, commercialization of its Companion Animal products in the US and general company purposes.
The loan was fully funded at closing and has a 48-month term, being interest-only for the first 24 months with interest payable quarterly in arrears. There are no warrants or equity instruments associated with the loan.
Parnell’s Chief Financial Officer, Brad McCarthy, said, “We are very pleased to once again enter into a debt facility with SWK Holdings having worked successfully with them previously. As we have stated in previous public announcements, we believe debt financing is an effective, non-dilutive source of capital that supplements our increasing organic cash generation from rapidly growing revenues and judicious cost management. We believe this debt facility provides sufficient additional working capital to enable Parnell to transition to expected profitability in 2017.”
Winston Black, CEO of SWK Holdings commented, “SWK is excited to continue our productive relationship with Parnell. Our second financing demonstrates our confidence in management’s vision of building a best of breed veterinary health business. We are pleased to have the opportunity to continue to support the company and its multiple growth initiatives.”
Parnell is a fully integrated, veterinary pharmaceutical company focused on developing, manufacturing and commercializing innovative animal health solutions. Parnell currently markets six products for companion animals and production animals in 14 countries and augments its pharmaceutical products with proprietary digital technologies – FETCH™ and mySYNCH®.
SWK Holdings Corporation is a publicly traded, specialized finance company with a focus on the global healthcare sector. SWK partners with ethical product marketers and royalty holders to provide flexible financing solutions at an attractive cost of capital to create long-term value for both SWK’s business partners and its investors.