Theratechnologies Inc T.TH

Today s Financing

[palinc2000]

Today s financing has really just TWO postives IMO.
1-It pushes back the dark cloud of the darn Convert  due in less than 12 months .The Convert was an unsecured loan bearing interest at 5.75% and is being repaid by a Secured Term LOan bearing interest at more than 11% .....So more than half of the term loan is used to retire the Convert ,However only 40 million of the term loan is made available at Closing without any conditions .The balance of the term loan will ne made available in 3 tranches upon THTX achieving undisclosed milestones ,,,,,Not knowing what the milestones are its hard to say if they are easily achievable ...(based on sales %% based on stock issues?,based on cash flow ? I dontt hink that clinical results are part of the milestones

SO today the Company is getting oxigen to push back the June 30 2023 Convert darl Cloud....
I am not sure if the company will disclose the milestones which would trigger the disbursements of the tranches,,,,I expect they will after Closing 

So a sigh of relief but for now it is just a refinancing of PART of the Convert (Convert 57 million new cash at Closing 40 million)

2-The second positive is that it should be easier to attract new equity investors to fund the R&D since the company will not have  the risk of defauting on the Convert in the short term

SO I think we will see some new money rather quickly from partnerships .collaboration agreements,and possibly equity
The market will react favorably  once the NEW money comes in

[Wino115]

This deal would make zero sense if you did not see some factual evidence that the probability of your oncology platform being something of value is better than a 50/50 shot.  While they still have $30mil or so cash on the balance sheet, don't forget there is an issued and approved ATM so if their backs against the wall they can easily payoff the small remaining convert balance and have a

[qwerty22]

It says "affiliate" of MAM. Is there a reason no name or is this just some vehicle for the deal? MAM are not biotech specialists so unless the affiliate is then maybe it's unlikely the specifics of the oncology program aren't all that important to the deal.

[qwerty22]

Maybe they do have expertise in healthcare/Pharma. The same name pops up on this. https://www.biospace.com/article/releases/marathon-asset-management-announces-acquisition-of-kaleo/

[qwerty22]

https://www.prnewswire.com/news-releases/marathon-asset-management-takes-strategic-steps-to-expand-healthcare-team-301279966.html

[palinc2000]

Paul said in a CC at least twice that the resolution of the Convert was something that new partners needed before making a commitment.Do you listen to the Quartetly CCs The problem is not that people were selling because of the Convert the problem is thst nobody was buying with the Convert being a dark cloud in less than a year Why would they use the cash on hand to repay the balance of the

[palinc2000]

From the April 13 CC   Philippe Dubuc Yes. Just, well, there's a few questions also on the mention of the convertible debenture that is still over a year away in terms of maturity, but we are starting to address it. And that blends in with the NASH financing as well. We mentioned a number of times before that there is quite a bit of interest for non-dilutive financing. And so

[IFlyTheUnicorn]

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