TORONTO, ONTARIO--(Marketwire - July 18, 2012) - Trimel Pharmaceuticals Corporation (TSX:TRL) (the "Corporation") is pleased to announce that the Corporation and its subsidiaries have entered into a loan and security agreement with GE Capital, Healthcare Financial Services ("GE Capital"), as agent for the lenders party thereto, pursuant to which GE Capital will advance U.S.$7,500,000 (the "Loan") to the Corporation. The Corporation intends to use the net proceeds from the Loan for general corporate purposes.
According to the Loan Agreement, the Loan accrues interest at 10.75% per year and is repayable in scheduled installments through to July 1, 2015 (subject to repayment on demand at any time should certain customary events of default occur). As is customary, the Corporation has granted security over the assets of the Corporation and its subsidiaries. In connection with the transaction, the lenders under the Loan Agreement (or certain of their affiliates) have been issued warrants exercisable for an aggregate of 154,916 common shares of the Corporation and certain brokers have been issued warrants exercisable for an aggregate of 51,639 common shares of the Corporation. The warrants are exercisable for five years at an exercise price calculated using the volume weighted average trading price of the Corporation's common shares on the Toronto Stock Exchange for the period of five days ending immediately prior to the completion of the Loan.
"The funding received today from GE Capital, in addition to the $13.2 million in gross proceeds associated with the equity offering announced yesterday, significantly strengthens Trimel's financial position and balance sheet," commented Bruce Brydon, Trimel's Chairman and Chief Executive Officer. "We believe that Trimel is well positioned to drive the execution of its business plan, particularly as it relates to the ongoing CompleoTRT™ and Tefina™ clinical trials."
Trimel Pharmaceuticals Corporation (TSX:TRL) - Developing Medications for Female Sexual Health and conditions related to Aging, and Well Being. Trimel is developing multiple product opportunities, including CompleoTRT™, a bio-adhesive intranasal Testosterone gel for the treatment of male hypogonadism, a condition commonly referred to as "Low T". For more information, please visit www.trimelpharmaceuticals.com.
For further information regarding Trimel Pharmaceuticals Corporation, please contact either Bruce Brydon, Chairman of the Board and Chief Executive Officer at (416) 679-0711 or Kenneth Howling, Chief Financial Officer at (416) 679-0536 or via email at firstname.lastname@example.org.
Forward Looking Statements
Information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, are assumptions regarding our future operational results. These assumptions, although considered reasonable by the Corporation at the time of preparation, may prove to be incorrect. Readers are cautioned that actual performance of the Corporation is subject to a number of risks and uncertainties, and could differ materially from what is currently expected as set out above. For more exhaustive information on these risks and uncertainties you should refer to our short form prospectus dated July 11, 2012 and our annual information form dated March 9, 2012 which are both available at www.sedar.com. Forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time, whether as a result of new information, future events or otherwise, except as required by applicable securities law.