Venture Life enters 5-year agreement for Gelclair with Jaguar Health, renews financing
Hot on the heels of last week's positive FY'23 results, consumer healthcare products firm () said today that it had signed a new exclusive 5 year deal for Gelclair (an FDA-approved oral mucositis prescription gel) with Jaguar Health in the US. The agreement covers future license fees, royalties and product revenues to .
CEO Jerry Randall adding: "This new agreement will ensure the continued supply of Gelclair to US oncology patients suffering oral mucositis, and generate meaningful additional revenues."
But that's not all. has also successfully renegotiated its RCF banking agreement with Santander and HSBC.
The new 3 year funding package (incl a 12 month option to extend) provides £30m of borrowing at an interest rate of 2.0%-2.85% above SONIA/EURIBOR. The facility is limited to 2.5x EBITDA for the previous 12 month period - including the trailing EBITDA from any acquisitions. On top, has access to another £20m - subject to certain conditions but on the same terms as the RCF.
Any cash drawn down can be used for acquisitions, working capital or any other business activity.
CFO Daniel Wells commenting: "Santander and HSBC have been supportive partners to Venture Life Group over the past 3 years, and we are delighted to complete our refinancing with them. The teams from across both lenders have been excellent to work with, and understand our business and the Consumer Healthcare sector well."
Hence allowing the group to further accelerate its expansion strategy - combining both organic and acquisitive growth. Cavendish have a price target of 68p/share.
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