ADMA Biologics enters into $ 100 million credit facility
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RAMSEY, NJ and BOCA RATON, Fla., December 09, 2020 (GLOBE NEWSWIRE) – ADMA Biologics, Inc. (Nasdaq: ADMA) (“ADMA” or the “Company”), an end-to-end commercial biopharmaceutical company specializing in manufacturing, marketing and development of specialized biologics derived from plasma, today announced an amendment to its existing senior secured term loan with Perceptive Advisors (“Perceptive”), which provides for an additional loan tranche of $ 15 million, increasing the total size of the credit facility to $ 100 million. The amended terms of the existing $ 85 million credit facility further provide, among other things, for a two-year extension of the interest-only period to the term of the credit facility maturing in March 2024, at a rate of two years. borrowing rate unchanged of 11%. Perceptive’s newly issued $ 15 million loan tranche has been fully utilized and used to pay off the remaining obligations under Biotest AG’s subordinated note entered into in June 2017, at a mutually agreed discount of 7% without prepayment penalties. associated. This additional loan tranche carries the same conditions as the modified senior secured loans. No changes have been made to the existing income covenants of the credit facility with Perceptive.
“This increased loan amendment demonstrates Perceptive’s long-term vision for the plasma industry and ADMA’s important role as a reliable producer of plasma-derived biologics,” said Joseph Edelman, CEO and Founder of Perceptive Advisors. “We remain committed to supporting ADMA’s business and unlocking shareholder value that we believe has yet to be realized. We are optimistic that the value of the assets of manufactured plasma and plasma collection centers will continue to appreciate in the future. “
“This amendment to our senior secured term loan, with its increased size and extended maturities, strengthens our long-term capital position and allows us to continue to execute our strategic priorities, including improvement initiatives. supply chain and plasma center expansion, in addition to generating significant and continued revenue growth in the near term, ”said Adam Grossman, President and CEO of ADMA. “Despite the headwinds of COVID-19, we remain on track to meet our previously provided targets of $ 250 million or more in revenue by 2024, and we are confident that we are well positioned to achieve profitability before the new 2024 maturity date for a loan. The continued support of Perceptive, who remains our largest shareholder, is a testament to the shareholder value that we believe will be created as we achieve these corporate goals and establish ADMA as the only fully integrated U.S. plasma fractionator. .
“Perceptive is delighted to provide additional capital to support ADMA’s short-term revenue and profitability growth strategy,” said Sam Chawla, portfolio manager at Perceptive. “The Company has made significant progress and achieved all of our goals and objectives to date. We look forward to seeing ADMA’s continued progress and supporting the company’s mission and business goals of creating value, focused on improving healthcare options for patients at risk of infectious disease.
The Perceptive Credit Amendment has an interest-only term with a maturity date of March 1, 2024. Borrowings under the Perceptive Credit Agreement bear interest at an annual rate equal to 7.5%, whichever is greater one-month LIBOR and 3.5%. ADMA will also issue a warrant to Perceptive to purchase 2,390,000 common shares of the Company at the lower of the closing price of the ADMA share on the date of the Amendment and the VWAP 10 days prior to the closing.
The debt financing disclosed in this press release is not exhaustive and, as such, the statements contained in this press release are qualified in their entirety by reference to the description of the debt financing transaction and the corresponding attachments, which are included in a current report on Form 8-K filed concurrently with this press release by ADMA with the Securities and Exchange Commission.
About Perceptive Advisors (Insightful)
Founded in 1999, Perceptive Advisors is a leading healthcare-focused investment firm with over $ 8.5 billion in regulatory assets under management as of October 29, 2020. Since its inception, Perceptive Advisors has grown. committed to supporting the advancement of the life sciences industry by identifying opportunities and directing resources to the most promising technologies in modern healthcare. For more information on Perceptive, visit www.perceptivelife.com.
About ADMA Biologics, Inc. (ADMA)
ADMA Biologics is an end-to-end U.S. commercial biopharmaceutical company dedicated to the manufacture, marketing and development of specialized plasma-derived biologics for the treatment of immunocompromised patients at risk of infection and others at risk of certain infectious diseases. . ADMA currently manufactures and markets three plasma-derived biologics approved by the United States Food and Drug Administration (FDA) for the treatment of immune deficiencies and the prevention of certain infectious diseases: BIVIGAM® (intravenous immunoglobulin, human) for the treatment primary humoral immunodeficiency (PI); ASCENIV ™ (intravenous immunoglobulin, human – slra 10% liquid) for the treatment of PI; and NABI-HB® (Hepatitis B Immune Globulin, Human) to enhance immunity against hepatitis B virus. ADMA manufactures its immunoglobulin products at its FDA approved plasma fractionation and purification facility , located in Boca Raton, Florida. Through its subsidiary ADMA BioCenters, ADMA also operates as an FDA-approved source plasma collector in the United States, which supplies some of its blood plasma for the manufacture of its products. ADMA’s mission is to manufacture, market and develop specialized human plasma-derived immunoglobulins targeting niche patient populations for the treatment and prevention of certain infectious diseases and the management of immunocompromised patient populations suffering from a deficiency. immune compromised for other medical reasons. ADMA has received US patents: 9,107,906, 9,714,283, 9,815,886, 9,969,793 and 10,259,865 related to certain aspects of its product and product candidates. For more information, please visit www.admabiologics.com.
Caution regarding forward-looking statements
This press release contains “forward-looking statements” in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, relating to ADMA Biologics, Inc. (“we”, “us” or the “Company”). Forward-looking statements include, without limitation, any statement which may predict, predict, indicate or imply future results, performance or achievements, and which may contain words such as “estimate”, “project”, “intention”, “forecast”, ” target “,” anticipate “,” their negative, or words or phrases of similar meaning. These forward-looking statements also include, but are not limited to, statements regarding ADMA’s future operating results; income and profitability schedule; execution of business objectives and achievement of objectives; realization of shareholder value; and future appreciation of the heritage value of manufactured plasma and plasma collection centers. Actual events or results may differ materially from those described in this document due to a number of important factors. Current and prospective securityholders are cautioned that there can also be no assurance that any forward-looking statements included in this press release will prove to be correct. Except to the extent required by applicable laws or rules, ADMA assumes no obligation to update any forward-looking statements or to announce revisions to any of the forward-looking statements. Forward-looking statements are subject to many risks, uncertainties and other factors that could cause our actual results and the timing of certain events to differ materially from any future results expressed or implied by the forward-looking statements, including but not limited to y limit to the risks and uncertainties described in our filings with the United States Securities and Exchange Commission, including our most recent reports on Forms 10-K, 10-Q and 8-K, and their amendments.
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