Jaguar Health Inc. (NASDAQ:JGAX) has offered an update regarding its capitalization strategy as well as the recent non-dilutive financing transactions.
Jaguar to achieve financial sustainability in 2021
Lisa Conte, the CEO and President of the company, said that they have managed to streamline operations at the company and its subsidiary Napo Pharmaceuticals Inc. She said that the core focus of the company is to attain financial sustainability in 2021 with the commercialization of Mytesi® (crofelemer). Jaguar continues to remove barriers to access to Mytesi®, and it is also pursuing more non-dilutive financing from interested partners in Mytesi’s non-US licensing rights. The company plans to use royalty financing transactions from Mytesi sales in funding Napo’s pipeline of possible crofelemer and Mytesi follow-on indications.
According to Lisa, from a capitalization standpoint, the company has progressed in 2020. This is by doing away with obstacles to carrying non-dilutive financing transactions and reducing debt debt-related associated with the six-year Napo litigation. The litigation, which was resolved in 2016, returned the commercial rights of Mytesi t Napo.
The company is now facing long term investors, and all deals Jaguar has finalized deals eliminating and congaing debts, preferences as well as warrants held by short investors. Jaguar has simplified its capitalization and eliminated restrictive deals related to its common stock, facilitating non-dilutive financing.
Jaguar focusing on long term investors
Recently the company finalized the first tranche of $6 million of its non-dilutive royalty financing that has a potential of around $17 million. It involves the sale of royalty rights associated with Mytesi revenue stream in the future. On October 7, 2020, the company announced that the initial tranche increased to $6 million from $5 million through mutual consent with the lender. This provided more funding in Q4 2020 for Napo’s single pivotal third phase clinical crofelemer study for prophylaxis diarrhea.
The company and Napo jointly entered the 4th amendment with Oasis Capital LLC for the accounts receivables agreement of May 12, 2020. According to the agreement, Oasis will purchase more accounts receivables related to Mytesi drug sales to cardinal Health.