Valeo (EPA:VLOF) Pharma Inc. (TSX:VPH, OTCQB:VPHIF) said it has closed on a non-dilutive US$40 million secured term loan facility from Sagard Healthcare Partners, with the funds to be used to finance two licensing deals also announced on Tuesday.
The company said Sagard will provide it with up to US$40 million, with US$30 million fully funded on the closing, and an additional US$10 million available for future in-licensing transactions and/or acquisitions prior to December 31, 2023. The facility matures after five years from closing.
Steve Saviuk, Valeo CEO, said the company was very happy to have, “the financial support of Sagard Healthcare Partners, a sophisticated and knowledgeable healthcare investor".
“Their support is a testament to the quality of our commercial assets, the soundness of our business model and the talented team we have at Valeo," Saviuk added in a statement. "This non-dilutive financing provides us with the necessary financial flexibility to accelerate our growth, deliver on defined value creation milestones and execute on our ambitious corporate objectives."
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Valeo said it intends to use the loan to fund the acquisition of the Canadian license rights to Xiidra and Simbrinza from Novartis Pharmaceuticals Canada, for the acquisition of ALLERJECT from Kaleo, and general corporate purposes.
David MacNaughtan, head of Sagard Healthcare Partners, said his company is pleased to support Valeo in building a broad portfolio of commercial products.
"We look forward to working with Valeo to advance its mission to become a leading Canadian specialty pharmaceutical company and provide Canadian healthcare professionals and patients with innovative therapeutic solutions to improve quality of life," MacNaughtan added.
READ: Valeo Pharma enters commercialization and supply agreement with Novartis Canada for two ophthalmic therapies
Reedland Capital Partners, acting through Weild and Co, served as financial advisor to Valeo in connection with the transaction.
Sagard Healthcare Partners is a wholly owned subsidiary of Sagard, a multi-strategy alternative asset manager with more than US$14 billion under management and professionals located in Canada, the US and Europe.
Kirkland, Quebec-based Valeo Pharma is a pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada with a focus on respirology/allergy, ophthalmology and other products.
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