Boston, MA 05/30/2014 (wallstreetpr) – Biotechnology Company, Retrophin Inc. (NASDAQ:RTRX) shares are up in the market by 25.47% after the company announced it had signed a binding commitment on a senior secured term loan facility, valued at $40 million. The term loan provided by Athyrium Capital Management is expected to Mature in 2018 with a LIBOR plus interest rate of 10%.
Term Loan Terms
Terms of the term loan include the lender being entitled to receive warrants of Purchase for 300,000 aggregate shares of common stock for five years valued at an exercise price of $13.93 a share. Retrophinhas also entered into a definitive purchase agreement with a number of institutional investors for the sale of its $40 million, 4.5% senior convertible notes due in 2019.
The shares can be converted into shares of the company’s common stock at a conversion rate of 57.43 shares per $1000 principal amount of Notes. The notes are expected to mature on May 30, 2019. The company’s CEO Martin Shkreli has pointed that they opted to go with Athyrium for the offering due to impressive termswere presented, as well as, its level of integrity and professionalism.
Retrophin Planning for Acquisitions
Retrophin Inc. (NASDAQ:RTRX) plans to use the amount raised for several exciting acquisitions that will be identified by the company’s business development team. Barclays had been selected as the lead placement agent for Retrophin, in connection with the placement of the Senior Convertible Notes.
The company’s stock is already a buzz of activities in the stock exchange at the back of a massive guidance increase, as well as the approval by the FDA for one of its drugs. Retrophinhas upped its full year revenue guidance to between $30 million and $35 million from the previous estimate of $20 million to $22 million.
Retrophin Inc. (NASDAQ:RTRX) has also entered into an agreement with mission Pharmacal Company, the agreement will see Mission acquiring marketing rights for the company’s drug Thiola drug.
