- Acerus Pharmaceuticals Corporation (ASP) and its subsidiaries have received an order for creditor protection
- The Acerus Group received the order from the Ontario Superior Court of Justice (Commercial List) under the Companies’ Creditors Arrangement Act (the CCAA)
- The directors of the company determined that it was in the best interests of Acerus to file an application for creditor protection under the CCAA
- Acerus Pharmaceuticals Corporation is a specialty pharmaceutical company with a primary focus on the field of men’s health
- Acerus Pharmaceuticals Corporation was unchanged at C$0.36 at 2:38 PM ET
Acerus Pharmaceuticals Corporation (ASP) and its subsidiaries have received an order for creditor protection.
The Acerus Group received the order from the Ontario Superior Court of Justice (Commercial List) under the Companies’ Creditors Arrangement Act (the CCAA).
As earlier disclosed, Acerus embarked on a strategic review of its business, including possible debt and equity financings, assets sales, M&A and licensing transactions which was overseen by a committee of independent directors.
After careful consideration of all available alternatives, the directors of the company determined that it was in the best interests of Acerus to file an application for creditor protection under the CCAA.
The initial order includes, among other things: (i) a stay of proceedings in favour of the Acerus Group; (ii) approval of the DIP loan; and (iii) the appointment of Ernst & Young Inc. as monitor of the Acerus Group.
The Acerus Group sought creditor protection under the CCAA in order to receive a stay of proceedings that will allow the Acerus Group to work with the monitor to facilitate the development of an orderly process designed to maximize the value of the Acerus Group’s assets for the benefit of its creditors and other stakeholders.
The DIP loan is anticipated to fund the operations of the Acerus Group in the ordinary course during this process.
The Acerus Group intends to also file petitions commencing proceedings under Chapter 15 of the United States Bankruptcy Code at the United States Bankruptcy Court for the District of Delaware for creditor protection in the United States.
Management of the company will remain responsible for the day-to-day operations of the company under the general oversight of the Monitor. FAAN Advisors Group Inc. has been appointed as the Chief Restructuring Officer of the company.
In order to fund the CCAA proceedings and other short-term working capital requirements, the Acerus Group has executed a facility agreement with First Generation Capital Inc., a company affiliated with the Chairman of the Board of Directors of Acerus.
The DIP lender agreed to advance a debtor-in-possession loan in the amount of US$7,000,000. The continued availability of the DIP loan is conditional on, among other things, certain conditions being satisfied, including the initial order remaining in effect.
It is anticipated that the Toronto Stock Exchange will place the company under delisting review and there can be no assurance as to the outcome of such review or the continued qualification for listing on the TSX.
Acerus Pharmaceuticals Corporation is a specialty pharmaceutical company with a primary focus on the field of men’s health.
Acerus Pharmaceuticals Corporation was unchanged at C$0.36 at 2:38 PM ET.
