TherapeuticsMD secures $15 million equity investment from Rubric Capital

BOCA RATON, Fla.–(BUSINESS WIRE)–TherapeuticsMD, Inc. (NASDAQ: TXMD), (“TherapeuticsMD” or the “Company”), a leading innovator and women’s health company, today announced that it has received an investment private $15 million in common stock of the Company and a new series of preferred stock (“PIPE”) of Rubric Capital Management LP (“Rubric”). TherapeuticsMD plans to use the proceeds of the transaction to meet its short-term working capital needs.

The Company has also entered into an amendment with its lender, Sixth Street Specialty Lending, Inc. (“Sixth Street”), to extend the debt maturity date of the Company’s financing agreement to September 30, 2022. The Company has the option to further extend the maturity date to October 31, 2022 and November 30, 2022 if it receives additional equity of $7 million per extension.

The Company believes that the PIPE, along with the extension of the funding agreement, will enable TherapeuticsMD to continue to meet the significant demand for its portfolio of women’s health and wellness products while its Board of Directors and its management team are evaluating strategic alternatives to strengthen the company’s long-term strategy. financial situation.

“TherapeuticsMD has three growing assets whose value has been bolstered by the recent additional NDA approval of Annovera and low-dose Bijuva, as well as the growing relevance of convenient and safe contraceptive options for women,” said David Rosen, Managing Partner of Rubric Capital Management. “With our investment, TherapeuticsMD will have the time and resources to thoroughly evaluate its strategic options with the goal of achieving the best outcome for all shareholders.”

“We are delighted to have Rubric’s support as we continue to evaluate strategic alternatives for the company,” said the Hon. Tommy Thompson, Chairman of the Board. “We believe this share capital, along with the Sixth Street extension, will strengthen the company’s ability to achieve the highest possible value for our shareholders.”

transaction details

In exchange for its initial investment of $15 million, Rubric received 565,000 common shares of TherapeuticsMD and 15,000 newly designated Series A preferred shares, with a liquidation value of $1,333 per share. Following the closing of the transaction, Rubric will own approximately 18.3% of the common shares of the Company.

The Company also granted Sixth Street warrants to acquire 200,000 common shares of the Company at an exercise price of $0.01 and would grant an additional 125,000 common stock warrants for each additional monthly extension elected by the society.

Advisors

Greenhill & Co., LLC is acting as financial advisor and DLA Piper LLP (USA) is acting as legal advisor to TherapeuticsMD.

About TherapeuticsMD, Inc.

TherapeuticsMD, Inc. is a leading, innovative healthcare company focused on the development and commercialization of new products exclusively for women. TherapeuticsMD products are designed to address the unique changes and challenges women face through the various stages of their lives with a therapeutic focus on family planning, reproductive health, and menopause management. TherapeuticsMD is committed to advancing women’s health and promoting awareness of their health issues. To learn more about TherapeuticsMD, please visit https://www.therapeuticsmd.com/ or follow us on Twitter: @TherapeuticsMD and on Facebook: TherapeuticsMD.

Cautions Regarding Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements may include, but are not limited to, statements regarding the company’s objectives, plans and strategies and statements, other than of historical fact, that address activities, events or developments that the company intends, expects, projects, believes or forecasts that it will or may occur in the future. These statements are often characterized by terms such as “believes”, “hopes”, “may”, “anticipates”, “should”, “intends”, “plans”, “will”, “expects”. to”, “estimates”, “projects”, “positioned”, “strategy” and similar expressions and are based on assumptions and assessments made in light of experience and management’s perception of historical trends, current conditions, expected future developments and other factors it deems appropriate. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company undertakes no obligation to update or revise such statements, whether as a result of new information, future events or otherwise. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are beyond the control of the Company. The important factors that could cause actual results, developments and business decisions to differ materially from the forward-looking statements are described in the sections entitled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission, including its latest annual report on Form 10.-K and quarterly reports on Form 10-Q, as well as current reports on Form 8-K, and include the following: whether the company will be able to refinance debt under its term loan facility and, if not, whether the business will be able to continue as a going concern; whether the Company will be able to raise capital to finance its operations; the effects of the COVID-19 pandemic; the Company’s ability to maintain or increase sales of its products; the Company’s ability to develop and market IMVEXXY®, ANNOVERA® and BIJUVA® and to obtain the additional financing necessary for this purpose; the effects of supply chain issues on the supply of the Company’s products; the potential for adverse side effects or other safety risks that could adversely affect the commercialization of the Company’s current or future approved products or prevent the approval of the Company’s future drug candidates; the Company’s ability to protect its intellectual property; the duration, cost and uncertain results of future clinical trials; the Company’s reliance on third parties to conduct its manufacturing, research and development, and clinical trials; the ability of the Company’s licensees to market and distribute the Company’s products; the ability of the Company’s marketing contractors to market ANNOVERA; the availability of reimbursement by governmental authorities and health insurance companies for the Company’s products; the impact of product liability lawsuits; the influence of extensive and costly government regulation; the impact of leadership transitions; the volatility of the market price of the common shares of the Company.

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