The current market for Liminal BioSciences Inc. (LMNL) was up for the company after announcing its debt repayment. LMNL is trading at $0.86, gaining more than 0.92 percent from its closing price on Monday. The stock closed at $0.85 at the end of the last trading session. The stock volume traded in the last trading session was around 84.9K shares. The current market cap of the company is around 26.54 million.
Liminal BioSciences Inc. (LMNL) repaid its debt
Liminal BioSciences Inc. (LMNL) stated that it has fully settled its $39.1 million debt to Structured Alpha LP (SALP). It ends the Company’s credit connection with SALP.
The April 27, 2017 consolidated loan agreement, as revised in November 2019, was fully paid on April 23, 2019. The Repayment also discharges all restrictions in the Loan Agreement and royalties stream purchase agreement dated May 1, 2018. This release covers any security interests, hypothecs, charges, and other liens placed on the assets of the Company’s affiliates, including any intellectual property held by such affiliates themselves or their subsidiaries.
Approximately CA$9.1 million in future interest expenses will be saved when the loan is repaid in 2021 with proceeds from the sale of pediatric review vouchers and the disposal of the company’s plasma-derived therapeutics business. Paying down the debt while being financially secure is in the company’s best interest and displays the company’s dedication to financial management and control. Neither premiums nor penalties were necessary for the Repayment.
LMNL CEO’s remarks
Deleveraging our balance sheet and cutting interest costs is part of our business objective, says Liminal BioSciences CEO Bruce Pritchard. Early repayment releases SALP’s secured rights in the Company’s assets, giving us full intellectual property ownership. This streamlines our procedures and expands our future possibilities, including pipeline asset transactions. The loan came in April 2024 and was a significant burden on our financial sheet. Despite ending our creditor relationship with SALP, we appreciate their continuing support.
Conclusion
Its debt repayment shows its strong balance sheet and good company performance. Throughout 2022, the Company will examine its balance sheet and aggressively explore opportunities to liquidate non-core assets and decrease expenses associated with prior activities.
