NEXMED BOLSTERS ITS CASH RESERVE WITH $1.4 MILLION INFUSION FROM SUCCESSFUL MORTGAGE REFINANCING ON ITS NEW JERSEY FACILITY
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SAN DIEGO--(BUSINESS WIRE)-- NexMed, Inc. (Nasdaq:NEXM), a specialty CRO with a pipeline of products based on the NexACT® technology, announced today that it raised $1.4 million in gross proceeds from refinancing the mortgage on its manufacturing facility in New Jersey. The mortgage secures the issuance of new convertible notes due December 31, 2012 (the "Notes"), which were purchased by three accredited investors, including The Tail Wind Fund Ltd., of Great Britain, a long-time investor in NexMed.
The Notes, which total $4 million, are convertible into shares of NexMed common stock at $0.58 per share on or before the due date. The Notes have a coupon rate of 7% per annum which is payable at NexMed's option, in cash or with certain exceptions, in shares of NexMed common stock at a price of 95% of a five-day weighted average of the market price of its common stock prior to the time of payment. The Company has used the proceeds to pay off in full the existing $2.59 million mortgage that was due December 31, 2011 and has earmarked the balance for working capital and general corporate purposes. NexMed has agreed to file a registration statement with the Securities and Exchange Commission covering the resale of the shares of common stock that are issuable upon conversion of the Notes.
Dr. Bassam Damaj, NexMed's President and Chief Executive Officer stated, "Our ability to successfully refinance the mortgage and push out the maturity date of the Notes is yet another testament to the strength that the market continues to place on NexMed. This latest cash infusion strengthens our reserves and enables us to accelerate the planned development of the next generation of our NexACT® technology. In a short period of time, we have made tremendous progress in the development of NexACT® for both new drugs and for non-transdermal delivery of drugs. We are pleased with our preclinical research results to-date and look forward to sharing them soon."
NexMed's facility in New Jersey is currently leased to a long term tenant who also has an option to purchase the building for $4.4 million. The annual rental income from the lease exceeds the annual debt service on the new mortgage.
About NexMed, Inc.
NexMed is the largest specialty CRO based in San Diego, CA and is one of the industry's most experienced CROs for in vitro and in vivo pharmacology services and research models. The Company's goal is to generate revenues from the growth of its Discovery Pre-clinical CRO business, while aggressively seeking to monetize its proprietary NexACT® drug delivery technology through out-licensing agreements with pharmaceutical and biotechnology companies, worldwide. At the same time, NexMed has embarked on a partnering program to pair the NexACT® delivery technology with drugs and drug candidates marketed and being developed by others, including NexACT-based treatments for onychomycosis, psoriasis, sexual dysfunction and cancer. For further information, go to www.nexmed.com and www.bio-quant.com.
Forward-Looking Statement Safe Harbor
Statements under the Private Securities Litigation Reform Act: with the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risks and uncertainties that may individually or mutually impact the matters herein described, including, but not limited to, NexMed's ability to pursue its development strategy, the ability to replicate results from its preclinical research with the NexACT® technology in later human clinical studies, and other matters that are outside the control of the Company.
NexMed Contacts:
NexMed Investor Relations:
Paula Schwartz
NexMed, Inc. Rx Communications Group, LLC
(917) 322-2216
[email protected]
NexMed, Inc.
Edward Cox, V.P.
Investor Relations & Corporate Development NexMed, Inc.
(858) 926-5811
[email protected]