Subsequent Events

9 Months Ended

Sep. 30, 2019

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On October 28, 2019, the Company filed the prior approval supplement for its planned first injectable product to be manufactured out of its newly completed expansion of manufacturing site in Buena, NJ. As this is the first injectable filing related to the new expansion, the review will be subject to a pre-approval inspection of the manufacturing site by the FDA, which the Company expects to occur within four months of the date of the filing.

On October 31, 2019, the Company closed its Series B Senior Unsecured Convertible Notes offering in the aggregate principal amount of $34.4 million. The New 2023 Notes will mature in May 2023 and are convertible at the option of the holder at any time prior to maturity at an initial conversion price of $0.72 per share, subject to adjustment under certain circumstances. The New 2023 Notes and any shares of common stock issuable upon conversion of the New 2023 Notes (the “Conversion Shares”) have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state or other jurisdiction’s securities laws, and the New 2023 Notes and the Conversion Shares may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws. The Company does not intend to file a registration statement for the resale of the New 2023 Notes or any Conversion Shares. The gross cash proceeds of approximately $29.3 million from the offering are being used to extinguish the Company’s existing 2019 Notes due December 2019, pay amounts owing with respect to other indebtedness, and to fund general corporate and working capital requirements. As part of the offering, the Company entered into agreements with certain holders of its existing 2023 Notes to exchange $9.0 million of the old 2023 Series A Unsecured Convertible Notes for $5.1 million of the Series B Senior Unsecured Convertible Notes. The New 2023 Notes bear interest at a rate of 7.00% per annum if paid in cash, semiannually in arrears on May 1 and November 1 of each year, beginning on May 1, 2020. The Company also has an option, and has agreed with its senior lender, to PIK the interest at 8.00% per annum, to defer cash payments. The net proceeds from the offering were $27.3 million after deducting the initial purchasers’ discounts and professional fees associated with the transaction.

In connection with the issuance of the New 2023 Series B Unsecured Convertible Notes, the expiration of the $15.0 million Delayed Draw Term Loan B, a part of the Company’s Senior Credit Facility, was accelerated to

October 31, 2019.