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Jaguar Health Meets Financial Condition For Sale Of Royalty Rights For Mytesi (Crofelemer) Indications

Financial Condition for Initial $5 Million Tranche of Potential $16 Million Non-dilutive Financing Transaction Achieved through the Establishment of an At-the-Market Program Yesterday for Potential

· 10/06/2020 08:32

Financial Condition for Initial $5 Million Tranche of Potential $16 Million Non-dilutive Financing Transaction Achieved through the Establishment of an At-the-Market Program Yesterday for Potential Future Financing Needs, if Any, with Ladenburg Thalmann

Aggregate Royalty Proceeds of Potential $16 Million Transaction Will Support Jaguar's Development Pipeline and Are Expected to Cover Pivotal Clinical Trial of Mytesi for Cancer Therapy-Related Diarrhea (CTD)

Crofelemer, the Active Ingredient in Mytesi and the Only Oral Plant-based Medicine Approved Under FDA's Botanical Guidance, Highlighted as Responsibly Sourced with Multiple Potential Uses in October 2 New York Times Special Opinion Section on "The Amazon has Seen our Future"

Jaguar Management to Present Thursday, October 8th, at Lytham Partners Virtual Investor Growth Conference

SAN FRANCISCO, CA / ACCESSWIRE / October 6, 2020 / Jaguar Health, Inc. (NASDAQ:JAGX) today announced that the company has met the financial condition for the initial $5 million tranche of the previously announced non-dilutive royalty financing transaction - which has the potential to total $16 million - involving the sale of royalty rights related to the future revenue stream for the company's FDA-approved drug product, Mytesi® (crofelemer). Per the term sheet related to the transaction, the term sheet becomes binding with respect to the initial $5 million tranche upon agreement on final documents, with potential aggregate gross proceeds of $16.0 million upon mutual agreement of the parties to consummate two additional tranches of royalty financing. The financial condition was met yesterday as a result of the company putting in place an at-the-market program [ATM] for potential future financing needs, if any, with Ladenburg Thalmann & Co. Inc. As of the date hereof, no shares have been issued under the ATM program. Ladenburg is unrelated to the lender involved in the royalty transaction.

"We are extremely pleased to have met the financial condition for the initial $5 million tranche of this non-dilutive royalty transaction by putting in place an ATM program for potential future activity, not issuing any shares at this time. Upon mutual agreement, as we announced last week, Jaguar and the lender may agree to consummate additional non-dilutive royalty financings of $5 million and $6 million in February 2021 and July 2021, respectively, for a total of $16.0 million," said Lisa Conte, Jaguar's president and CEO. "We intend to use the proceeds to support advancement of regulatory activities associated with our pipeline, including funding the pivotal trial for our lead product candidate, crofelemer, for cancer therapy-related diarrhea (CTD). The trial is expected to initiate in the fourth quarter of 2020. Our wholly owned subsidiary, Napo Pharmaceuticals, Inc., has contracted with the primary clinical research organization that will support the trial, and we believe the proceeds from the aggregate royalty financing will cover anticipated trial-related costs."