Press release from Marketwire
Trimel Pharmaceuticals Corporation Announces Update Regarding Milestone Payment and Amendment to Loan Agreement
Friday, April 05, 2013
Trimel Pharmaceuticals Corporation Announces Update Regarding Milestone Payment and Amendment to Loan Agreement08:00 EDT Friday, April 05, 2013
TORONTO, ONTARIO--(Marketwired - April 5, 2013) - Trimel Pharmaceuticals Corporation (TSX:TRL) (the "Company" or "Trimel") announced today that Trimel BioPharma SRL ("Trimel SRL"), its wholly owned subsidiary, has entered into a letter agreement with M&P Patent AG ("M&P") with respect to a milestone payment owing to M&P under the intellectual property rights and product development agreement (as amended) between Trimel SRL and M&P relating to CompleoTRT™. Pursuant to this letter agreement, M&P has agreed that the US$2.0 million milestone payment otherwise payable by Trimel SRL on March 31, 2013 may instead be paid by Trimel SRL in two equal instalments on or before April 25, 2013 and May 7, 2013, respectively. As noted in the amended and restated preliminary short form prospectus filed by the Company on April 3, 2013 (the "Amended and Restated Preliminary Prospectus"), it is intended that a portion of the proceeds from the equity offering described therein (the "Offering") will be used to make these payments (assuming the Offering is completed).
In addition, the Company has entered into a formal amendment of its loan agreement with General Electric Capital Corporation to provide for a temporary reduction of the amount of cash holdings required to be maintained by the Company from US$3.75 million to US$1.0 million until May 1, 2013. This amendment is expected to allow the Company to raise funds through the Offering while remaining in compliance with its loan agreement.
A copy of the Amended and Restated Preliminary Prospectus is available on SEDAR at www.sedar.com.
Trimel Pharmaceuticals Corporation (TSX:TRL) - Trimel is a specialty pharmaceutical company actively developing medications for male hypogonadism, female sexual dysfunction and various respiratory disorders. CompleoTRT™, a product utilizing Trimel's licensed bioadhesive intranasal gel technology, has successfully completed its pivotal Phase III study for the treatment of male hypogonadism, a condition commonly referred to as "Low T", and Trimel is preparing to file its New Drug Application with the FDA in the second quarter of 2013. For more information, please visit www.trimelpharmaceuticals.com.
Notice regarding 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 Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual performance of the Company 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 amended and restated preliminary short form prospectus dated April 3, 2013 which is 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Trimel Pharmaceuticals Corporation
Kenneth G. Howling
Chief Financial Officer