Antares Pharma, Inc. (Amex:AIS) announced today that is has closed on a secured credit facility consisting of two term loans in the aggregate principal amount of $10MM (“Credit Facility”) to help fund working capital needs, with MMV Financial Inc.(“MMV”) and HSBC Capital (Canada) Inc. (“HSBC Capital”) acting as lenders.
Antares received $5,000,000 gross proceeds upon closing of the first traunche and has access to an additional $5,000,000 (the second traunche) after September 30, 2007, but before December 31, 2007, subject to certain conditions, including compliance with representations, warranties and covenants. The balance of any borrowings is repayable at anytime, subject to certain conditions and prepayment premiums. In connection with the Credit Facility, Antares also issued warrants to purchase a total of 640,000 shares of its common stock to MMV and HSBC Capital at an exercise price of $1.25 of which 240,000 shares underlying the warrants are conditional on the occurrence of the drawdown of the second traunche. Additionally, the issuance of any shares upon exercise of the warrants is conditioned upon receipt of approval from the American Stock Exchange.
Ron Patterson, Executive Vice President, of MMV stated, “We are extremely excited to be part of Antares going forward. After extensive due diligence we believe that the Company’s drug delivery and injection technology platforms are extremely promising. With its seasoned senior management team, significant partnership agreements signed in the past twelve months and expanding pipeline of products we feel Antares is poised to grow significantly in the coming years.”
Jack Stover, President & CEO, of Antares stated, “We are pleased to have closed this financing with such high caliber partners as MMV and HSBC Capital. The additional funding provides us with working capital to help support our forecasted growth on attractive terms. We are pleased with the confidence that MMV and HSBC Capital have shown in us and in our plans and we look forward to welcoming them as investors in Antares.”
Antares has agreed to file a registration statement for the resale of the common stock issuable upon exercise of the warrants within 60 days of closing.
About Antares Pharma
Antares Pharma is a specialized pharma product development company focused on developing patented drug delivery systems and injectable device engineering capabilities. Antares’ current technology platforms include its ATD™ Advanced Transdermal Delivery system, and its related TecTix™ system for topical and transmucosal delivery, its Easy Tec™ oral fast-melt technology, and subcutaneous injection technology platforms including both Vibex™ disposable mini-needle injection device and Valeo™/Vision® reusable needle-free injection devices. Antares Pharma is committed to leveraging its multiple drug delivery platforms to add value to existing drugs and to create new pharmaceutical products and injectable devices. Overall, Antares’ product pipeline, if approved, will address unmet medical needs by reducing side effect profiles, improving safety, increasing effectiveness, and improving patient compliance and convenience. Antares Pharma has corporate headquarters in Princeton Crossroads Corporate Center in Ewing, NJ, with subsidiaries performing research, development, manufacturing and product commercialization activities in Minneapolis, Minnesota and Basel, Switzerland.
Safe Harbor Statement
In addition to historical facts or statements or current conditions, this press release contains forward-looking statements within the meaning of the “Safe Harbor” provisions of The Private Securities Litigation Reform Act of 1995, including statements regarding the timing of product sales, market estimates, market potential and growth prospects, technology platforms and working capital needs. Forward-looking statements made by Antares provide Antares’ current expectation or forecasts of future events. Antares’ results could differ materially from those reflected in these forward-looking statements due to decisions of regulatory authorities, Antares’ ability to execute on its development plans, capital needs and general financial, economic, regulatory and political conditions affecting the pharmaceutical industry generally. For a discussion of these and other risks and uncertainties that may effect the forward-looking statements, please see the risk factors in Antares’ quarterly reports and other filings made with the Securities and Exchange Commission. Given these risks and uncertainties, any or all of these forward-looking statements may prove to be incorrect. Antares undertakes no obligation to update publicly any forward-looking statement.
About MMV
MMV Financial is a Toronto-based specialty finance company providing creative debt solutions directly to technology and life sciences companies across North America. MMV is backed by top U.S. and Canadian private equity firms and financial institutions including CCP Equity Partners, Caisse de dépôt et placement du Québec, NewStar Financial, Inc., and Wells Fargo Company. For more information visit http://www.mmvf.com or contact Ron Patterson, Executive Vice President, 416.977.9718
About HSBC Capital
HSBC Capital (Canada) Inc. is a subsidiary of HSBC Bank Canada and offers merchant banking services. HSBC Bank Canada, a subsidiary of HSBC Holdings plc, has more than 170 offices and is the leading international bank in Canada. With around 9,500 offices in 76 countries and territories and assets of US $1,738 billion at 30 June 2006, the HSBC Group is one of the world's largest banking and financial services organizations.
