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Valeritas and its Secured Creditors Agree to Convert $27.5 Million of Debt into
BRIDGEWATER, N.J., Feb. 15, 2017 (GLOBE NEWSWIRE) Valeritas Holdings, Inc. (OTCQB:VLRX) today announced that it has reached agreement with both of its secured creditors (funds affiliated with CRG and WCAS Capital Partners IV, L.P., an affiliate of Welsh, Carson, Anderson and Stowe) to convert a total of $27.5 million of debt to preferred stock, subject to certain conditions.
Specifically, Valeritas and the two creditors have agreed to convert approximately one-half of the outstanding $55.0 million principal amount into shares of preferred stock at a price to be calculated as described in the executed agreement. The shares of preferred stock will have no voting rights, will be convertible into common stock on a one-to-one ratio and may be redeemed by Valeritas at any time at a price equal to the conversion price, subject to adjustment for stock splits and the like subsequent to the date of issuance of the preferred stock.
This agreement offers several advantages for Valeritas such as reducing our debt-to-equity ratio and significantly reducing our debt service, said John Timberlake, President and Chief Executive Officer of Valeritas. We appreciate the continued support of both of our creditors as this agreement will increase our financial flexibility and allows the Company to focus its resources on continuing to execute our growth strategy for our V-Go flagship product.
For additional information on the conversion, please see the Companys Current Report on Form 8-K to be filed today with the Securities and Exchange Commission.
About Valeritas Holdings, Inc.
Valeritas is a commercial-stage medical technology company focused on improving health and simplifying life for people with diabetes by developing and commercializing innovative technologies. Valeritas flagship product, V-Go® Wearable Insulin Delivery device, is a simple, wearable, basal-bolus insulin delivery device for patients with type 2 diabetes that enables patients to administer a continuous preset basal rate of insulin over 24 hours. It also provides discreet on-demand bolus dosing at mealtimes. It is the only basal-bolus insulin delivery device on the market today specifically designed keeping in mind the needs of type 2 diabetes patients. Headquartered in Bridgewater, New Jersey, Valeritas operates its R&D functions in Shrewsbury, Massachusetts. For more information, please visit www.valeritas.com.
The following information was filed by Valeritas Holdings Inc. (VLRX) on Tuesday, February 21, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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