MONTREAL, CANADA–(Marketwired – Nov 16, 2015) – Knight Therapeutics Inc. (TSX:GUD), through one of its wholly-owned subsidiaries (“Knight”), announced today that it has agreed to extend an additional secured loan of US$5.5 million to Synergy CHC Corp. (OTCQB:SNYR) (“Synergy”). The secured loan will support Synergy’s acquisition of Flat Tummy Tea and UrgentRx™, two established brands that nicely complement Synergy’s growing portfolio of best-in-class consumer health products.
In January of this year, Knight provided a secured loan of US$6.0 million to Synergy to support its acquisition of the FOCUSfactor™ brand, America’s #1 brain health supplement. In June of this year, Synergy purchased the U.S. rights to Neuragen™ from Knight Therapeutics Inc.
This new secured loan of US$5.5 million bears interest at 15% per annum plus other additional consideration. The interest rate will decrease to 13% if Synergy meets certain equity-fundraising targets. The loan matures on November 11, 2017. As part of the transaction, Knight has been issued 5,550,625 common shares in the capital of Synergy representing approximately 6.5% of Synergy’s fully diluted capital. Knight also received a 10-year warrant entitling Knight to purchase up to 4,547,243 shares of Synergy at US$0.49 per share. In addition, Knight obtained the exclusive sales rights to Flat Tummy Tea and UrgentRx™ in Canada, Israel, Romania, Russia and Sub-Saharan Africa.
“We are thrilled to announce the strengthening of our partnership with Knight and the addition of two unique offerings to our diversified portfolio of proven consumer health products,” said Jack Ross, President and CEO of Synergy.
“We are pleased to support Synergy’s continued growth through its clever, well-structured acquisitions of established consumer health brands with unique selling propositions,” said Jonathan Ross Goodman, Director of Knight.
About Flat Tummy Tea
Flat Tummy Tea’s uniquely formulated two-step herbal detox tea works to naturally help speed metabolism, boost energy and reduce bloating. Since being founded in 2013, Flat Tummy Tea has grown rapidly, largely attributed to the strength of their branding and their innovative, extremely effective use of social media. It is currently sold exclusively online to a global, 20 to 30 year old female market. Available in either a two or four week pack, Flat Tummy Tea can be purchased on their website at www.flattummytea.com or visit their Instagram page.
UrgentRx® produces a line of fast-acting, portable OTC medications that provide right now relief for today’s busy, on-the-go consumer. UrgentRx® Fast Powders™ are innovative, fast-acting flavored powder medications in patented credit card-sized packets. They can be taken without water, providing immediate relief for a wide variety of everyday ailments, whenever and wherever they strike. UrgentRx® produces medications to treat allergy attacks, headaches, aches and pains, heartburn, and upset stomach, as well as a heart attack first aid that has helped save multiple lives. For additional information, please visit www.urgentrx.com.
About Synergy CHC Corp.
Synergy CHC Corp. is a Consumer Health Care company that is in the process of building a portfolio of best-in-class consumer product brands. Synergy’s strategy is to grow its portfolio both organically and by further acquisition. Synergy’s diversified portfolio now includes FOCUSFactor™, Neuragen™, Hand MD™, Flat Tummy Tea and UrgentRx™. For more information, please visit www.synergychc.com.
About Knight Therapeutics Inc.
Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and select international markets. Knight Therapeutics Inc.’s shares trade on TSX under the symbol GUD. For more information about Knight Therapeutics Inc., please visit the company’s web site at www.gud-knight.com or www.sedar.com.
This document contains forward-looking statements for Knight Therapeutics Inc. and its subsidiaries. These forward looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. Knight Therapeutics Inc. considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions the reader that these assumptions regarding future events, many of which are beyond the control of Knight Therapeutics Inc. and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations are discussed in Knight Therapeutics Inc.’s Annual Report and in Knight Therapeutics Inc.’s Annual Information Form for the year ended December 31, 2014. Knight Therapeutics Inc. disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events, except as required by law.