Theratechnologies Inc T.TH

New Press Release - Theratechnologies Announces Agreement in Principle with Marathon to Amend Some of the Terms and Conditions of its Loan Facility

- Removal of Minimum Liquidity Covenant of US$30 Million if F8 Formulation of Tesamorelin is Not Approved by the FDA by March 31, 2024 - Minimum Liquidity Covenant to Decrease Over Time to a Minimum of US$15 million from US$20 Million Based on Attainment of Targeted Adjusted EBITDA - Quarterly...read article.

[palinc2000]

This really shows how the original terms of the liab agreement were a time bomb !!!! A big black mark on the CFO On the other hand the operational side must be improving with greater confidence of a turn around

[Kd5513]

Am I reading correctly..... Marathon cost of warrant is now 60% less than before and we get only needing 15 million in cash? Also we pay them 600k for this? Not seeing this as a huge win am I wrong?

[palinc2000]

It gives piece of mind to have Marathon pull the plug in the short term..Its gives more time for a turnaround ...Its a relief with a cost ,,,of a badly negotiated deal from the start

[palinc2000]

PEACE NOT PIECE

[THobsv]

It is a lot to give up, and demonstrates how tough the initial terms were, but it does show Marathon's willingness to work with TH and this seems like a more complete restructuring of the agreement so that there is a sustainable way forward. Lenders hold all the cards in these situations.  5% dilution at $55mm market cap stings, but reducing the liquidity requirements are an important

[palinc2000]

Ggood post THobsv....

[Wino115]

It's a fair price for less stringent, more realistic financial requirements, thus a lot more time in case it's needed to rightsize should TH1902 miss endpoints. Let's not forget that investors previously fully diluted the attached warrants to the previous raise, which are now with an exercise price in the $12+ range.  Those will only exercise should TH1902 show promise.  We