Synergy Pharmaceuticals Inc. (NASDAQ:SGYP) Files An 8-K Entry into a Material Definitive AgreementItem 1.01Entry into a Material Definitive Agreement.
On December5, 2018, Synergy Pharmaceuticals Inc. (the “Company”) and certain of its subsidiaries entered into an Amendment to Limited Forbearance Agreement (the “Amendment”) with CRG Servicing LLC, as administrative agent and collateral agent (in such capacities, the “Agent”) and the lenders party thereto (collectively, the “Lenders”), which amended that certain Limited Forbearance Agreement, dated as of November21, 2018 (as amended by the Amendment, the “Forbearance Agreement”), among the Company, the Agent and the Lenders, with respect to the Company’s Term Loan Agreement, dated as of September1, 2017 (as amended, modified or otherwise supplemented from time to time, the “Term Loan Agreement”), with the Agent and the Lenders. to the Amendment, amongst other things, the Forbearance Period (as defined in the Forbearance Agreement) has been extended to December14, 2018 (11:59 p.m.Central time).
The foregoing is a summary of the material terms of the Amendment. Investors are encouraged to review the entire text of the Amendment, a copy of which is filed as Exhibit10.1 to this report and incorporated herein by reference.
Item 2.04Triggering Events that Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.
On December5, 2018, the Company notified the Lenders of a default under the Term Loan Agreement due to the failure of the Company, as of December5, 2018, to maintain the minimum liquidity amount (“Liquidity Covenant Default”) required under Section10.02 of the Term Loan Agreement. In addition, as referenced in the Forbearance Agreement, the Company was in default under the Term Loan Agreement due to the failure of the Company, beginning on October30, 2018, to maintain the average market capitalization (“Market Capitalization Default”) required under Section10.01 of the Term Loan Agreement. to the Forbearance Agreement, the Lenders agreed with the Company not to take action on account of either the Liquidity Covenant Default or the Market Capitalization Default, to accelerate the obligations of the Company under the Term Loan Agreement or otherwise exercise their default rights and remedies through December14, 2018.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
SYNERGY PHARMACEUTICALS, INC. ExhibitEX-10.1 2 a18-41215_1ex10d1.htm EX-10.1 Exhibit 10.1 AMENDMENT TO LIMITED FORBEARANCE AGREEMENT This AMENDMENT TO LIMITED FORBEARANCE AGREEMENT is made as of December 5,…To view the full exhibit click here
About Synergy Pharmaceuticals Inc. (NASDAQ:SGYP)
Synergy Pharmaceuticals Inc. (Synergy) is a biopharmaceutical company focused on the development and commercialization of gastrointestinal (GI) therapies. The Company’s GI platform includes two lead product candidates: plecanatide and dolcanatide. It is engaged in the discovery, research and development involving uroguanylin analogs for the treatment of functional GI disorders and inflammatory bowel disease. Plecanatide is the Company’s uroguanylin analog being evaluated for use as a once-daily tablet for two functional GI disorders, chronic idiopathic constipation (CIC) and irritable bowel syndrome with constipation (IBS-C). Plecanatide is a 16-amino acid peptide that is structurally identical to uroguanylin with the exception of a single amino acid change. Dolcanatide is also its uroguanylin analog being explored for inflammatory bowel disease (IBD). Dolcanatide is designed to be an analog of uroguanylin with resistance to standard digestive breakdown by proteases in the intestine.