SWKH News & Events

Runway Growth Finance Corp. (RWAY) announced that it has entered into a definitive merger agreement to acquire SWK Holdings Corporation (SWKH). Runway Growth's Founder and CEO, David Spreng, said, "This transaction meaningfully advances our strategy to diversify and optimize our portfolio by adding SWK's high-quality investments in the key sectors of healthcare and life sciences. At the same time, we are enhancing our earnings power, more than offsetting the anticipated loan repayments we previously signaled, and we expect to deliver mid-single-digit NII accretion. This transaction reinforces the strength of Runway Growth's portfolio as we work to generate long-term value for our shareholders through disciplined growth and venture debt investing with a focus on excellent credit quality in the sectors we know best. Looking ahead, and with the full support of BC Partners Advisors L.P., we are pursuing growth through both organic and inorganic strategies as a permanent capital vehicle backed by the $10 billion BC Partners Credit platform. We are doing all of this while growing our shareholder base, improving our existing robust portfolio metrics and increasing our total assets to $1.3 billion pro forma with the SWK merger transaction." The transaction will be a net asset value-for-NAV merger and will have an estimated purchase price of approximately $220M, based on SWK's June 30, 2025 reported financials and including estimated SWK transaction expenses. This includes a fixed stock component expected to total $75.5M in Runway Growth shares valued at closing NAV per share and approximately $145M in cash. The cash payment will be based on SWK's final NAV, which will be struck 48 hours prior to closing and reflective of SWK's accumulated retained earnings between June 30, 2025 and close. Additionally, Runway Growth Capital LLC, in its capacity as Runway Growth's external investment adviser, will be contributing $9M in cash for distribution as consideration to the stockholders of SWK separate from and in addition to the consideration described in the first sentence of this paragraph. SWK's portfolio includes 22 companies, with an approximate fair value of $242M based on Runway Growth's estimates conducted as of August 15, 2025. SWK's Board of Directors, which consists of three independent members, has unanimously approved the transaction. Carlson Capital L.P. has signed a Voting Agreement supporting the transaction. The transaction is expected to close in late 2025 or the first quarter of 2026, pending SWK shareholder and regulatory approvals and other customary closing conditions.

Aptar Pharma (ATR) announced it has acquired the clinical trial materials manufacturing capabilities of Mod3 Pharma from SWK Holdings (SWKH). The acquisition enhances Aptar's support for early-stage drug development by providing formulation, fill and finish services for Phase 1 and 2 clinical trials. Through the deal, Aptar Pharma will operate an FDA-inspected facility in Boonton, New Jersey, with an initial focus on orally inhaled nasal drug products. Financial terms were not disclosed.

Originations: In November, SWK advanced $5.0M to existing borrower Journey Medical to help fund the company's launch of Emrosi. In November, as part of a broader amendment SWK advanced $0.6M to existing borrower Biotricity. On amendment closing, SWK received 600,000 warrants to purchase Biotricity stock at $0.50 per share. In December, SWK closed an $8.0M senior secured term loan with Triple Ring Technologies, a leader in R&D and product co-development across the medtech, life sciences, sustainable agriculture, and environmental technology industries. In December, SWK advanced $2.5M to existing SWK borrower SKNV. In December, SWK closed a $25.7M expansion of its existing credit facility with Eton, which now totals $30.0M. On funding, SWK received 289,736 warrants to purchase Eton stock at $5.32 per share. In December, SWK advanced $2.5M to existing SWK borrower MedMinder. Repayments: In November, as a result of the sale of certain Exeevo assets to a third-party, SWK received a $3.4M net payment. In early January, SWK received an additional $0.7M net payment. SWK anticipates receiving a $0.5M payment during the first quarter of 2025 and is eligible for a three-year, annual earn-out based on the increase in gross profit. In November, SWK received a $13.0M payment from the Biolase bankruptcy estate. SWK anticipates receiving an additional payment from the estate in the first half of 2025. In December, SWK received a $1.9M payment from Trio Healthcare. SWK may receive an additional, small payment during 2025. In December, SWK received a $4.2M payment from Veru triggered by the sale of the FC2 Female Condom to a third-party. SWK has no remaining economics on the product. In January, Moleculight made a final payment to SWK totaling $12.2M, fully satisfying its outstanding obligation. SWK continues to hold Moleculight preferred equity, which is carried at no value on SWK's balance sheet.