Medexus Pharmaceuticals entered into an amendment to the company’s revolving credit facility with a syndicate of lenders agented by MidCap Funding IV Trust (MidCap). Among other things, the amendment provides for a US$5.0 million increase in MidCap’s revolving loan commitment amount on substantially the same terms provided under the existing facility. Following the amendment, Medexus will have total borrowing capacity under the revolving credit facility of US$25.0 million subject to the borrowing base.

“We are pleased to extend our strong partnership with MidCap and bolster our liquidity position as we head into this upcoming quarter,” commented Marcel Konrad, Chief Financial Officer of Medexus. “We appreciate our lenders’ support as we continue to focus on delivering strong revenue growth and improved overall performance across our portfolio of products in both the United States and Canada.”

In connection with the amendment, Medexus also issued to MidCap warrants to purchase 135,710 common shares of Medexus, with an exercise price equal to the five-day volume-weighted average price on the Toronto Stock Exchange calculated as of September 29, 2022, and amended MidCap’s outstanding warrants to purchase 134,290 shares to reduce the exercise price to reflect that same five-day volume-weighted average price. The newly-issued warrants and the amendments to the existing warrants will become effective on October 13, 2022, being 10 business days after the date of this announcement. The warrants will be exercisable until the maturity of the loans outstanding under Medexus’s credit facilities with MidCap, which is expected to occur in July 2023 unless extended in accordance with the terms of the facilities.