Newbury Pharmaceuticals AB has successfully signed a 15 MSEK loan agreement
Newbury has secured immediate funding represented by a loan of 15 MSEK from independent private investors. The loan has maturity date of December 31. 2024, and carries an interest rate of 11 % per annum which is paid at the end of each quarter. The loan is intended to be repaid in cash. No financial advisor has been used and therefore no transaction costs are applicable.
The loan facility is planned to be replaced by a standard bank financing from a major bank who is providing an inventory financing facility. Discussions on terms and conditions have taken place with a major bank, and Newbury believes that a conversion to a bank financing will take place during 2024 based on launching a broader portfolio and sales/EBITDA results.
The loan will be used for the necessary inventory to commercialise Newbury´s portfolio. The number of launched and marketed products is expected to increase from currently four (4) products up to 14 products by the end of 2024.
Furthermore, it is expected that the sales uptake will secure that Newbury can deliver on the financial goal to deliver a quarterly positive EBITDA during 2024 and thereby establish a foundation for profitable growth.
“Securing financing of the inventory build-up is a pivotal enabler for the sales growth which is expected during the next 18 months where several products will be launched. The recent announcement of a new exclusive partnership covering products intended for hospital treatments and this debt financing are two excellent milestones. Furthermore, we are excited to launch some of our high-end specialty products” says CEO Lars Minor.
