Scienture Holdings, Inc. Announces Private Placement of $3 Million of 10% Secured Convertible Debentures as Initial Tranche of $12 Million Offering and Entry into $50 Million Equity Line of Credit Agreement
Summary
Scienture Holdings to Receive Funding of Up to $12 Million From Private Placement of 10% Secured Convertible Debentures and Up to $50 Million from Equity Line of CreditTampa, FL, Nov. 26, 2024 (GLOBE NEWSWIRE) -- Scienture Holdings, Inc. (Nasdaq: SCNX) (the Company or Scienture), a pharmaceutical company with strategic capabilities across R&D, manufacturing, sales & marketing, and commercial operations, today announced it has entered into a securities purchase agreement to issue 10% secured convertible debentures in an aggregate principal amount of up to $12,222,222 million to certain affiliates of Arena Investors, LP (Arena) in three separate tranches that are subject to certain closing conditions.The closing of the first tranche was consummated on November 25, 2024 and the Company issued debentures in an aggregate principal amount of approximately $3.33 million.Dawson James Securities, Inc. acted as the sole placement agent for the private placement of the debentures.Concurrent with the debenture offering, Scienture also entered into an agreement with Arena Business Solutions (ABS), an affiliate of Arena, for a $50 million equity line of credit (ELOC). Under the terms of the agreement, the Company will have the right, but not the obligation, to issue and sell to ABS up to $50 million of shares of common stock over a period of 36 months, subject to customary conditions. The firm brings individuals with decades of experience, a track record of comfort with industry complexity, the ability to deliver within time constraints, and the flexibility to engage in transactions that cannot be addressed by banks and other conventional financial institutions. We are a highly experienced team of industry professionals who are passionate about developing unique specialty product concepts and solutions that bring enhanced value to patients and healthcare systems. These risks include risks relating to agreements with third parties; our ability to raise funding in the future, as needed, and the terms of such funding, including potential dilution caused thereby; our ability to continue as a going concern; security interests under certain of our credit arrangements; our ability to maintain the listing of our common stock on the Nasdaq Capital Market; claims relating to alleged violations of intellectual property rights of others; the outcome of any current legal proceedings or future legal proceedings that may be instituted against us; unanticipated difficulties or expenditures relating to our business plan; and those risks detailed in our most recent Annual Report on Form 10-K and subsequent reports filed with the SEC.Forward-looking statements speak only as of the date they are made.