Acura Pharmaceuticals announces conversion of debt
PALATINE -- Acura Pharmaceuticals Inc. said Abuse Deterrent Pharma LLC has converted $6.9 million, or the entire principle and accrued interest of its loan to the company, into shares of Acura's common stock.
Effective with this conversion, the loan is retired and Acura is working with AD Pharma to release AD's security interest in all Acura assets. Under the terms of the deal, AD Pharma elected to convert the $6.9 million outstanding principal and accrued interest at 16 cents per share, yielding 42.9 million newly issued common shares. Acura's total common shares outstanding is now 65 million.
"AD Pharma's conversion of our sole outstanding secured loan into equity reduces future cash needs to repay the note at its 2023 maturity, and provides us greater flexibility for financing options, if appropriate," said Bob Jones, Acura's CEO. "AD Pharma and the company's minority shareholders are now aligned with respect to the future results of Acura."
Acura Pharmaceuticals is a drug delivery company engaged in the research, development and commercialization of technologies and products intended to address safe use of medications.