Clinical dermatology company, Botanix Pharmaceuticals (ASX:BOT), has entered into documentation with Kreos Capital VII and its related entities for a loan facility of up to the euro equivalent of US$30 million.
Headquartered in London, Kreos Capital is a provider of growth and venture debt financing to companies in the technology and healthcare industries. In August 2023, Kreos Capital was acquired by BlackRock.
Botanix said the facility provides for an initial tranche of A$31 million (US$20 million) available upon closing and anticipated to be drawn down today, and a further ~A$15.5 million (US$10 million) available to be drawn down up to and including 1 October 2026, subject to drawdown conditions.
Botanix said any funds drawn down under the facility will be used for general working capital and other permitted commercialisation and platform expansion purposes.
Botanix is a dermatology company that has received FDA approval for its lead product Sofdra, for the treatment of primary axillary hyperhidrosis. Sofdra is the first and only new chemical entity approved by FDA to treat primary axillary hyperhidrosis and presents a novel safe and effective solution for patients who have lacked treatment options for this socially challenging medical condition.
The debt facility is secured by the assets of Botanix and its subsidiaries. Kreos Capital has the option to convert part of the loan into fully paid ordinary shares in the company under certain conditions.
Botanix executive chairman, Vince Ippolito, said, “We are pleased to work with Kreos Capital in relation to the Facility and appreciate the opportunity to do business with one of the world’s leading debt providers with more than 25 years of experience.
“The flexibility provided by the Facility will allow us to make rapid decisions to support the acceleration of Sofdra sales and move quickly to expand the platform as opportunities present themselves over the coming year.”