MonoSol Rx Closes $10 Million in Private Debt Financing
Option to Receive Additional $2.5 Million
Warren, NJ and Portage, Ind. (June 12, 2008) – MonoSol Rx, a drug delivery company specializing in dissolving thin film pharmaceutical products, announced today it closed a $10 million private Loan and Security Agreement with White Oak Partners. The agreement provides MonoSol Rx with an option to receive an additional $2.5 million from White Oak upon the achievement of certain milestones.
MonoSol Rx will use the funds for general corporate purposes, appropriate capital equipment investments and for the advancement of its research and development programs targeting prescription, generic and over-the-counter pharmaceutical products to utilize the Company’s proprietary thin film drug delivery technology.
A. Mark Schobel, chief executive officer of MonoSol Rx, commented, “Our goal is to produce and provide the most enhanced, effective and safest thin film drug products for the global prescription market. This new funding endorses our thin film drug delivery technology capabilities, and our ability to develop products that offer significant advantages over existing dosage forms, including better compliance, ease of dosing, better stability and durability, as well as quicker absorption and improved content uniformity of extremely low dose formulations.”
Keith J. Kendall, chief financial officer of MonoSol Rx, commented, “This transaction is an important element of our financing efforts to provide the Company the capital required to continue to advance its technology and business model. It underscores the confidence the financial markets have in our ability to deliver on our strategy and our plans to develop and commercialize quality products for our partners. The transaction also highlights for our partners that they are aligned with a well capitalized firm.”
Cowen and Company served as the sole arranger in the loan financing with White Oak Partners, through its affiliate, White Oak Global Advisors. White Oak Partners is a leading restructuring and financial advisory firm serving middle market companies, as well as financial and lending institutions throughout the US.
About MonoSol Rx
MonoSol Rx is a drug delivery company specializing in proprietary, dissolving thin film pharmaceutical products. The Company’s thin film technology, which is similar in size, shape and thickness to a postage stamp, dissolves rapidly and utilizes a novel process and proprietary encapsulation compositions to mask the taste of the drug contained within the film. MonoSol Rx’s strategy is to develop and partner innovative thin film strip products in the prescription, generic and OTC pharmaceutical markets and to establish a leadership position in thin film drug delivery technology through continued development of its drug delivery technology and intellectual property portfolio.
About White Oak Group
White Oak Group is a leading restructuring and financial advisory firm serving middle market companies and their owners, as well as financial and lending institutions throughout the US.
About Cowen and Company
Cowen and Company provides investment banking services, equity research, sales trading and mergers and acquisition advice, to emerging growth companies in sectors including healthcare, technology, media and telecommunications, aerospace and defense, consumer and alternative energy.