Valeo Pharma Inc. (TSX:VPH, OTCQB:VPHIF) told investors it has entered into a $5 million credit facility with Accord Financial (TSX:ACD) which it said provides it with additional financial liquidity and increased flexibility to support its long-term growth strategy.
The pharmaceutical company noted that the credit facility is secured by a first-rank lien on its short-term assets, and bears interest at the Scotiabank (TSX:BNS) prime rate plus an applicable margin. Borrowings under the credit facility are expected to be used for working capital and other general corporate purposes, it added.
"Accessing non-dilutive capital to augment our existing cash reserve is an important milestone as we accelerate our path towards profitability,” the company’s CFO Luc Mainville commented.
Valeo Pharma is dedicated to the commercialization of innovative prescription products in Canada with a focus on Respiratory/Allergy, Ophthalmology and Hospital Specialty Products.
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