HRZN News & Events

Horizon Technology "announced it has provided a $50 million venture loan facility to Pelthos Therapeutics (PTHS), with an initial funding of $30 million, and up to $20 million to support future growth. Pelthos is a publicly traded biopharmaceutical company that is licensed to commercialize ZELSUVMI(TM) (berdazimer) topical gel, an FDA-approved treatment of molluscum contagiosum, a common skin infection characterized by small bumps or lesions. ZELSUVMI delivers nitric oxide directly to the affected skin or tissue via the Nitricil platform, which enables the gel to slowly and safely release onto the affected areas. Recently, Pelthos also acquired the rights to Xepi(R) Cream, a topical treatment for impetigo, and Xeglyze, a topical treatment for head lice. The loan proceeds will be used for working capital and general growth purposes."

Pelthos Therapeutics (PTHS) has secured financing from Horizon Technology Finance Corporation (HRZN), an affiliate of Monroe Capital, with an initial funding of $30M, and up to $20M to support future growth. Horizon funded $30M at closing, with up to an additional $20M available upon achieving certain milestones. The rate is Prime plus 3.75%, currently 10.50%, paid only on drawn capital. The term is sixty months with amortization beginning at month thirty-six with the ability to begin in month 48, if certain milestones are met and interest only until amortization commences. In connection with the financing, Pelthos issued Horizon warrants to purchase 65,488 shares of its common stock, par value $0.0001 per share, at an exercise price of $27.49 per share. Proceeds from the financing will be used to support the commercialization of ZELSUVMI, launch Xepi and Xeglyze, and for working capital and general corporate purposes.

"We produced a solid third quarter by increasing our net asset value and achieving strong NII, as we moved toward completing our merger with MRCC," said Mike Balkin, Chief Executive Officer of Horizon. "In the quarter, we originated a modest number of new loans and acquired the portfolio of a co-lender, which was accretive to our net asset value per share. We also achieved positive outcomes with respect to two stressed investments, which is a testament to our ability to work with our portfolio companies to achieve positive solutions in downside situations."