BRIDGEWATER, N.J., Feb. 09, 2017 (GLOBE NEWSWIRE) -- Valeritas Holdings, Inc. (OTCQB:VLRX) today announced that it has reached an agreement with its largest lender, Capital Royalty Group (CRG), to amend its existing $50 million senior secured term loan agreement, extending the Company’s payment obligations.
Specifically, the amendment extends the interest only-period period to May 2019 from May 2018, extends the deadline for full payment of the loan to May 2022 from May 2021, and reduces the mandated liquidity covenant to allow for a minimum cash balance of $2.0 million from a minimum cash balance of $5.0 million.
“These amendments will enable us to focus our investments on the commercialization of our V-Go® Wearable Insulin Delivery device in the U.S.,” said John Timberlake, President and Chief Executive Officer of Valeritas. “We appreciate the confidence our partners at CRG have shown in our capital-efficient commercial strategy, which we initiated in early 2016 with a significant cost reduction followed by the implementation of our higher-touch, higher-frequency and more targeted campaign in the second half of 2016 that has gained traction. We thank CRG for their flexibility and continued support of the company.”
For additional information on the term loan agreement, please see the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission today.
About Valeritas Holdings, Inc.
Valeritas is a commercial-stage medical technology company focused on improving health and simplifying life for people with diabetes by developing and commercializing innovative technologies. Valeritas’ flagship product, V-Go® Wearable Insulin Delivery device, is a simple, wearable, basal-bolus insulin delivery device for patients with type 2 diabetes that enables patients to administer a continuous preset basal rate of insulin over 24 hours. It also provides discreet on-demand bolus dosing at mealtimes. It is the only basal-bolus insulin delivery device on the market today specifically designed keeping in mind the needs of type 2 diabetes patients. Headquartered in Bridgewater, New Jersey, Valeritas operates its R&D functions in Shrewsbury, Massachusetts. For more information, please visit www.valeritas.com.
