NEW YORK (
Unigene Laboratories Inc.
on Monday secured a $750,000 senior secured note from Victory Park Capital Advisors LLC to provide it with necessary working capital as the lender plans to sell certain Unigene assets at an auction on April 15.
Boonton, N.J.-based Unigene, a manufacturer of peptide-based drugs, said it had reached a deal with Victory Park Capital Advisors to extend its ability to operate. The $750,000 note is convertible into the company's common stock, the statement said.
Unigene spokesman Joshua Drumm of Tiberend Strategic Advisors Inc. was unaware of how much time the new note would buy the company. Nor was he able to provide the note's pricing or provide the interest rate or maturity date of the note.
Chicago-based Victory Park is an asset management firm that specializes in direct credit and control equity investing in middle-market and distressed companies. Calls to Victory Park weren't returned Monday.
Unigene has $74.5 million in total debt. The company owes $47.82 million in principal plus $5.6 million in interest to Victory Park Capital Advisors and its affiliates Victory Park Management LLC, Victory Park Credit Opportunities LP, VPC Fund II LP, VPC Intermediate Fund II (Cayman) LP and Victory Park Credit Opportunities Intermediate Fund LP, for various promissory notes due on Sept. 21.
Unigene is in default on the notes and doesn't have the cash to repay them, filings with the Securities and Exchange Commission said.
According to Unigene's statement on Monday, Victory Park Capital declared approximately $55.8 million in notes payable immediately because of the default. The lender has initiated an auction of certain Unigene assets that Victory Park Capital has a lien on, including its patented therapeutic peptide drug delivery platform called Peptelligence, as well as other assets.
The assets will be sold at a public auction, under Article 9 of the Uniform Commercial Code, on April 15 in the Katten Muchin Rosenman LLP office in Chicago, the statement said.
"We value VPC's ongoing support and willingness to continue financing the company," Unigene CEO Ashleigh Palmer said in the statement Monday. "Unigene remains focused on our efforts to conserve capital during these adverse conditions and challenging times."