Proof that VMC Debt = $13mOink! I'm back.
The VMC debt (after selling animal health on April 15, 2014 and using the proceeds to pay down some of the outstanding debts) is $13,164,000. Please refer to "Notice of Special Meeting of Shareholders to be held on April 14, 2014 and Management Information Circular dated March 12, 2014". Shareholders received a copy of this document. You can also get it from Sedar.com.
In this document, please turn to Schedule "C" toward the end of the document. This schedule is titled "Debt Outstanding after Completion of th Sale Transaction".
Debt related to the VMC: $13,164 thousand, made up of:
- Business Development Bank of Canada, Term Loan: $3,432 thousand
- MEDTE, Term Loan: $5,000 thousand
- Agri-Ops (Federal Government): $4,357 thousand
- FedDev: $375 thousand
Debt Related to Human Health: $11,398 thousand
- Industry Canada - ITO Capital Portion: $3,310 thousand
- Business Development Bank of Canada, Mortgage: $310 thousand
- Industry Canada - ITP potential future royalties: $7,778 thousand
- Other Debt - Capital Leases (company cars etc): $366 thousand
Per the May 14, 2014 press release for the 3Q financial results (up to March 31, 2014) discussing subsequent events: "The Company has
utilized the sale proceeds to repay in full its expensive debt with Paladin Labs Inc ($34.8 million with penalties and interest),
$5 million of its debt with the Ontario Ministry of Economic Development, Trade and Employment (MEDTE), its debt with Capital Royalty L.P. ($7.4 million), $0.5 million of its debt with the Business Development Bank, and the remainder of its mortage in Armidale, Australia ($0.2 million)".
You can read the interest rates and repayment schedules on each of the outstanding debts in Schedule C, which I didn't bother typing out for you. You will see in those notes that the $7,778 thousand debt to Industry Canada in Human Health is "Unsecured, non-interest bearing, repayable at a rate of 6% if Urocidin is successfully commercialized." In other words, repayable as a royalty of 6% on Urocidin future revenue until the payments have totalled $7.8 million.
If you refer to the 2013 annual report financial statements, you will see in Note 11 (long-term debt) that they had slightly under $10m payable to MEDTE, which has now been paid down to leave only $5m outstanding.
I rest my case. Oink!