Agree, and he reiterated that they have enough cash to get them to cash flow break even in 2025. Not sure what to make of it, but sounds like we should consider the possibility that they do not need to access the 3rd and final $150M tranche of the Athyrium notes (NPA).
If we assume:
1) they don't access the remaining 3rd Tranche of $150M of the Note Purchase Agreement (they have to decide on what to do with it by March 31st)
2) they likely need to raise $50 to $75M in cash to have an adequate cash cushion to get to cash flow break even in 2025.
Then some sort of non-dilutive licensing deal with a significant cash infusion may make up the cash needs and help to strengthen their balance sheet.
My guess would be Teoxane for European rights to Daxxify with an up front payment of $50M. Teoxane already owns 7.4% stake =$6.55M shares in Revance so this would only help Teoxane recover some of its unrealized share losses.
Dew/others: would love to hear your thoughts. We will have our answer by March 31st on Athyrium 3rd tranche.
NPA details:
The notes issued pursuant to the First Tranche and Second Tranche bear interest at an annual fixed interest rate equal to 8.50%. The First Amendment modified the variable interest rate adjustment for the Third Tranche from Adjusted Three-Month LIBOR to Adjusted Three-Month Term SOFR. If the Third Tranche of Notes Payable becomes committed, the Notes Payable will then bear interest at an annual rate equal to the sum of (a) 7.0% and (b) Adjusted Three-Month Term SOFR for such interest period (subject to a floor of 1.50% and a cap of 2.50%). We are required to make quarterly interest payments on each Notes Payable commencing on the last business day of the calendar month following the funding date thereof, and continuing until the Maturity Date.
Pursuant to the First Amendment, the Company is required to repay Athyrium the outstanding principal amount of the Second Tranche notes in installments on the last business day of each March, June, September and December (commencing in September 2024), in each case, based on the following principal amortization payment schedule: 2.5% in September and December 2024; 5.0% in March and June 2025; 7.5% in September and December 2025; and 10.0% in March and June 2026; followed by repayment of the Second Tranche in full on September 18, 2026.
