aibioFennec Pharmaceuticals repays $13 million of convertible debt early
Tickers FENC
The payment to Petrichor comes from available cash. It cuts about $1.5 million in annual interest and removes about 1.6 million potential shares.
Key facts
- Company
- Fennec Pharmaceuticals Inc. (NASDAQ: FENC)
- News type
- Financings
- Primary source
- Fennec Pharmaceuticals Inc. 8-K (2024-12-20)
Fennec Pharmaceuticals Inc. (Nasdaq: FENC) repaid $13 million of its approximately $32 million convertible debt facility with Petrichor Healthcare Capital Management ahead of schedule.
After the payment, the facility stands at approximately $19 million and still matures in September 2027. Fennec said the repayment was financed entirely with available cash, according to its press release.
Convertible debt is debt that can be turned into shares. Fennec said the early repayment eliminates approximately $1.5 million in annual interest expense and a potential equity overhang of approximately 1.6 Million Shares.
Chief Executive Officer Jeff Hackman said the move "optimizes the Company's balance sheet and overall capital structure" while saving future interest payments.
The company said it still expects its cash, cash equivalents and investment securities to fund planned operations into 2026, as it reported with its third quarter 2024 results.