SWK Holdings Corp (SWKH)

[Enterprising Investor]

SWK Holdings Announces Portfolio Changes (12/22/15)

PDI, Inc.

On October 31, 2014, SWK Funding LLC, a Delaware limited liability company (the “Company”) and wholly-owned subsidiary of SWK Holdings Corporation, a Delaware corporation (“SWK Holdings”), entered into a credit agreement pursuant to which the Company provided to PDI, Inc. (the “PDI”) a term loan in the principal amount of $20,000,000.

On December 22, 2015, PDI repaid all of its outstanding obligations to the Company for an aggregate amount of $21,881,365, which included an exit fee of $1,600,000 and $270,000 of accrued interest.

Cambia Royalty

On July 31, 2014, the Company purchased 25% of a royalty stream paid on the net sales of Cambia®, an NSAID pharmaceutical product indicated for the treatment of migraine. Cambia® is marketed in the United States by Depomed, Inc. and in Canada by Tribute Pharmaceuticals Canada Inc.

On December 9, 2015, the Company purchased an additional 25% of the royalty stream for an initial purchase price of $4,500,000. The purchase was structured in the same manner as the initial purchase and provides for additional contingent consideration of (i) $500,000 to be paid by the Company to the seller upon Cambia® reaching certain net sales and (ii) annual sharing payments to be remitted to the seller once aggregate royalty payments received by the Company exceed certain thresholds.

http://www.sec.gov/Archives/edgar/data/1089907/000155278115001113/e00462_swk-8k.htm