By Dean Seal
Shares of ScPharmaceuticals Inc. jumped more than 24% to $6.20 before falling back into loss in premarket trading after the company disclosed regulatory approval for one of its products as well as $100 million. dollars of new debt financing.
The Burlington, Mass.-based company said Monday morning that the U.S. Food and Drug Administration has approved Furoscix for the treatment of patients with chronic heart failure with worsening congestion.
Five minutes later, the company said it had entered into a binding term sheet for a $100 million secured credit facility with funds managed by Oaktree Capital Management LP, with plans to use the money to repay existing debt and launch Furoscix.
The agreements are expected to be signed by mid-October and provide $50 million immediately, along with two tranches of $25 million each that will be continental after certain commercial milestones are achieved.
After closing at $4.98 on Friday, shares began to gain quickly on the heels of the two announcements, hitting a high of $6.20 before reversing and falling to a loss. They were down 6% at $4.68 as of 8:51 a.m. ET.
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