Pro forma cash position of $ 57 million as at December 31, 20201
NEWPORT BEACH, Calif., March 23, 2021 (GLOBE NEWSWIRE) – Evolus, Inc. (Nasdaq: EOLS), a successful beauty company with a customer-centric approach focused on delivering breakthrough products, today announced several transactions concluded with its strategic partner Daewoong Pharmaceutical Co. Ltd. (“Daewoong”), which further strengthens the Company’s balance sheet and financial position.
“We appreciate the financial commitments from our strategic partner Daewoong which allow us to invest directly in accelerating the growth of our neurotoxins business,” said David Moatazedi, President and CEO. “With this announcement, we have resolved all legal issues relating to the International Trade Commission matter with all parties and are more focused on the growth of Jeuveau.® in the United States with international expansion plans with our European launch of Nuceiva ™ in early 2022. ”
“Another critical component of our settlement efforts and our 2021 strategy has been the restructuring of our balance sheet,” said Lauren Silvernail, Chief Financial Officer and Executive Vice President, Corporate Development. “We previously announced the elimination of $ 76.4 million in senior debt from Oxford Finance in January 2021. Today, we are announcing the further reduction of $ 40.5 million in convertible debt, with our partner Daewoong having decided to early convert its debt into Evolus ordinary shares. Daewoong further agreed to pay Evolus $ 25.5 million in cash and eliminate $ 10.5 million in current and potential milestone payments. In total, the restructuring completed this quarter strengthens Evolus with pro forma cash at December 31, 2020 of approximately $ 57 million1 and the elimination of $ 127.4 million in debt and milestone payments. We look forward to providing a detailed financial update on our 2020 year-end earnings call later this month. “
Details of the restructuring of the first quarter of 2021
- $ 25.5 million cash payment from Daewoong to Evolus
- Evolus debt elimination of $ 127.4 million and potential future milestone payments
- In January 2021, Evolus, Inc. paid $ 76.4 million to meet all outstanding obligations, including accrued interest, under its 2019 loan and guarantee agreement with Oxford Finance
- Daewoong to Convert $ 40.5 Million of Debt and Accrued Interest into Approximately 3.1 Million Evolus Common Shares
- $ 10.5 million in current and potential milestone payments eliminated by Daewoong
- Combination of shares results in approximately $ 57 million in cash and pro forma investments as of December 31, 20201
Additional details on today’s announced transactions with Daewoong can be found in the current report on Form 8-K filed by the company with the Securities and Exchange Commission today.
About Evolus, Inc.
Evolus is a successful beauty company with a customer-centric approach focused on delivering breakthrough products. In 2019, the US Food and Drug Administration approved Jeuveau® (prabotulinumtoxinA-xvfs), the first and only neurotoxin dedicated exclusively to aesthetics and manufactured in a state-of-the-art facility using Hi-Pure ™ technology. Jeuveau® is powered by Evolus’ unique technology platform and is designed to transform the aesthetics market by removing existing sticking points for today’s customers. Visit us at: www.evolus.com.
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are statements that could be considered as forward-looking statements, including statements that relate to the state of processes, future plans, events, outlook or performance and statements containing the words “plans”, “expects”, “believes”, “strategy”, “opportunity”, “anticipates”, ” prospect “,” designed “or other forms of such words or expressions, although not all forward-looking statements contain these identifying words. The company’s forward-looking statements include, without limitation, statements made by Mr. Moatazedi regarding the growth of the Jeuveau® company in the United States and internationally.
Forward-looking statements are based on current estimates and assumptions made by the management of the company and are believed to be reasonable, although they are inherently uncertain and difficult to predict. Forward-looking statements involve risks and uncertainties that could cause actual results or experience to differ materially from those expressed or implied by forward-looking statements. Factors that could cause actual results or experience to differ materially from those expressed or implied by forward-looking statements include uncertainties associated with our ability to meet all of our losses, costs, expenses, liabilities and damages in the settlement agreement with Daewoong and our ability to comply with the terms and conditions of the settlement agreements with Allergan, Inc., Allergan Limited and Medytox, Inc. Additional risks and uncertainties relating to Evolus and our business include the continued impact of COVID-19 on our business and the economy in general, uncertainties related to the adoption of Jeuveau® by customers and consumers, the efficiency and operability of our digital platform, the competition and market dynamics, our ongoing legal proceedings and our ability to maintain regulatory approval of Jeuveau® and other risks described in the intitu “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 as filed with the Securities and Exchange Commission on October 29, 2020, which is available online at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Unless required by law, Evolus assumes no obligation to update or revise forward-looking statements to reflect new information, changes in circumstances or unforeseen events. If the Company updates or revises one or more of these statements, investors and others should not conclude that the Company will make any further updates or corrections.
Jeuveau® is a registered trademark of Evolus, Inc.
Evolux ™ and Nuceiva ™ are trademarks of Evolus, Inc.
Hi-Pure ™ is a registered trademark of Daewoong Pharmaceutical Co, Ltd
1 Represents cash, cash equivalents and short-term investments as at December 31, 2020 of $ 107.6 million plus $ 25.5 million of cash provided by Daewoong, less $ 76.4 million for repayment of the Oxford Finance debt on January 4, 2021.
Contacts Evolus, Inc .:
Ashwin Agarwal, Evolus, Inc.
Vice-President, Finance, Investor Relations and Treasury
Phone. : + 1-949-284-4559
E-mail: [email protected]
Crystal Muilenburg, Evolus, Inc.
Phone. : + 1-949-284-4506
E-mail: [email protected]