Replies to post #250922 on Biotech Values

[DewDiligence]

You’re correct—The third/final Athyrium tranche is $150M (not $100M). From RVNC’s 8/8/23 PR (https://investors.revance.com/files/doc_news/2023/08/Revance-Reports-Second-Quarter-2023-Financial-Results-Provides-Corporate-Update.pdf ):

On August 8th, Revance and Athyrium Capital amended the company’s existing Note Purchase Agreement entered into on March 18, 2022. Pursuant to the amendment, the committed 8.5% Second Tranche note was reduced from $100 million to $50 million, and the uncommitted Third Tranche note was increased from $100 million to $150 million.

[DewDiligence]

RVNC—What makes the most sense (IMO) is that RVNC was essentially forced to do today's offering in order to qualify for the $150M third tranche from Athyrium. Moreover, RVNC may have been close to violating one or more of the Athyrium covenants had they not raised equity capital very soon. The consequences of RVNC’s breaching any of the Athyrium covenants would be disastrous insofar as Athyrium would then have the contractual right to demand repayment of the entire loan immediately.