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Aequus Announces Short Term $2 Million Loan from Chairman and CEO Doug Janzen, Provides Update on Delay in Filing Annual Financial Statements
Wednesday, May 18, 2022Company Profile | Follow Company
Vancouver, BC, May 18, 2022--(T-Net)--Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF), announces that it has entered into an agreement with Mr. Doug Janzen, Chairman and Chief Executive Officerof the Company, pursuant to which Mr. Janzen will provide short-term financing to Aequus by way of an unsecured demand loan of C$2 million.
The purpose of the financing is to allow the Company to pay off the existing convertible debentures maturing May 2, 2022.
Grant Larsen, Aequus' Chief Commercial Officer, stated: "We are thankful for Doug's investment. His continued confidence in our ability to provide cost-effective and high-quality solutions to meet both patient and physician needs. The proceeds from the note will enable us to repay the convertible debentures maturing in May and allow us to focus our efforts on our strongest product candidates, reaffirming our commercial capabilities, and rejuvenating specialty products and categories for our partners."
Doug Janzen, Chairman and CEO, Aequus Pharmaceuticals
"I see lot of opportunities for Aequus to continue to add new products to our portfolio. This loan agreement supports future growth and materially lowers our interest costs," said Doug Janzen, Aequus Chairman and CEO. "We are excited about our future as Zimed PF is making steady progress though the Health Canada review process and our team continues to work toward adding new Eye Care products, including products from our partners at ReVision."
The Loan will bear interest at an annual rate of interest of two and a half percent (2.5%), to be calculated and repaid monthly, and is repayable on demand.
The Company and Mr. Janzen are also working towards a longer-term financing arrangement that will replace the Loan.
The company also announced that the filing of its audited annual financial statements for the fiscal year ended December 31, 2021 and its management's discussion and analysis relating to the Annual Financial Statements continues to be delayed and they now expect to receive a Cease Trade Order next week.
Doug Janzen, CEO and Director commented that "This situation is incredibly frustrating for us as early indications show strong revenue figures in 2021. I recently entered into a loan agreement with the Company because I believe in our ability to continue to grow revenues and add new products to the commercial portfolio at Aequus. The unfortunate and unanticipated delay in the Annual Disclosure was due to changes in the regulatory landscape within which we operate, resulting in our auditors needing an unexpected level of sales information from third parties, which was not historically required. COVID related staffing issues at the audit firm may also have been a factor in the delay. We would like to thank our commercial partners for their cooperation during the year-end financial audit and we will be working to file the Annual Disclosure as soon as possible."
The Company now expects to file the Annual Disclosure on or before Friday, May 20, 2022, and intends to provide updates on further developments in respect of this matter promptly following their occurrence.
ABOUT AEQUUS PHARMACEUTICALS INC.
Aequus Pharmaceuticals Inc. (TSX-V: AQS , OTCQB: AQSZF) is a growing specialty pharmaceutical company focused on developing and commercializing high quality, differentiated products. Aequus has grown its sales and marketing efforts to include several commercial products in ophthalmology and transplant. Aequus plans to build on its Canadian commercial platform through the launch of additional products that are either created internally or brought in through an acquisition or license, remaining focused on highly specialized therapeutic areas.
The Loan involves a related party (as such term is defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101")), specifically a director and senior officer of the Company, and constitutes a related party transaction under MI 61-101. This transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(b) and 5.7(1)(f) of MI 61-101, as the Company is not listed or quoted on any of the stock exchanges or markets listed in subsection 5.5(b) of MI 61-101, and the Loan represents a loan from a related party on reasonable commercial terms that are not less advantageous to the Company than if the Loan were obtained from a person dealing at arm's length and the Loan is not convertible or repayable in securities.
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This release may contain forward-looking statements or forward-looking information under applicable Canadian securities legislation that may not be based on historical fact, including, without limitation, statements containing the words "believe", "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "potential" and similar expressions. Forward- looking statements are necessarily based on estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as the factors we believe are appropriate. Forward-looking statements include but are not limited to statements relating to: the implementation of our business model and strategic plans; revenue growth trends into the future; expected timing for product launches; the Company's expected revenues; the regulatory approval of its products; the Company's ability to attract international partners; and ongoing discussions with and the Company's ability to secure potential partners to further grow our product portfolio. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Aequus, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements. [ MORE ] |
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