Nuvo Pharmaceuticals Inc., a commercial healthcare company with a portfolio of commercial products and pharmaceutical manufacturing capabilities, announced that it has secured a $6.0 million operating revolving credit 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."