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Verrica Pharmaceuticals Closes Credit Facility For Up To $27.5 Million in Non-Dilutive Growth Capital

VRCA
  • Verrica Pharmaceuticals closed a credit facility of up to $27.5 million with an entity controlled by Chairman Paul B. Manning.
  • The facility supports YCANTH® commercialization, the global Phase 3 program for common warts, & general corporate operations.
  • Borrowings bear interest at one-month SOFR plus 8.00% per annum, subject to a 4.50% floor, with interest payable in kind until maturity.
  • Maturity is set for December 31, 2030, with potential for no scheduled interest or principal payments until that date absent an event of default.
  • Verrica may borrow $12.5 million immediately, with an additional $15.0 million available upon meeting specific revenue, growth, & operational milestones.
  • Dr. Rieger stated the full $27.5 million could extend the company's cash runway into 2028.
  • The global Phase 3 common warts program includes two pivotal studies with data readouts expected by mid-2027.
  • If approved, YCANTH® could become the first FDA-approved therapy for common warts, a condition affecting approximately 22 million US patients.
  • The credit facility is secured by substantially all assets of Verrica & certain subsidiaries.
  • Mandatory prepayments are required for proceeds from certain transactions, & quarterly payments apply if positive operating cash flow exceeds a specified amount.