Journey Medical Secures New $20M Credit Facility

TL;DR

**Journey Medical just locked in a new $20M credit line, replacing their old one, boosting financial flexibility.**

AI Summary

Journey Medical Corp (DERM) entered into a significant financing agreement on December 27, 2023, securing a new credit facility for up to $20 million. This facility includes a $15 million term loan and a $5 million revolving credit line, which replaces their previous $15 million credit facility. This matters to investors because it provides the company with more financial flexibility and potentially lower borrowing costs, which could support future growth initiatives and improve their balance sheet.

Why It Matters

This new credit facility provides Journey Medical Corp with increased financial flexibility and potentially better terms, which can support operations and future growth, positively impacting shareholder value.

Risk Assessment

Risk Level: low — Securing a new, larger credit facility generally reduces financial risk by providing more liquidity and potentially better terms.

Analyst Insight

A smart investor would view this as a positive development, indicating improved financial stability and access to capital for Journey Medical Corp, potentially warranting further research into their growth strategies.

Key Numbers

• $20M — New Credit Facility Limit (Total available financing for Journey Medical Corp)
• $15M — Term Loan Amount (Portion of the new credit facility provided as a term loan)
• $5M — Revolving Credit Line Amount (Portion of the new credit facility provided as a revolving credit line)

Key Players & Entities

• Journey Medical Corp (company) — the registrant
• $20 million (dollar_amount) — maximum amount of the new credit facility
• $15 million (dollar_amount) — amount of the term loan and the previous credit facility
• $5 million (dollar_amount) — amount of the revolving credit line
• December 27, 2023 (date) — date of the earliest event reported

Forward-Looking Statements

• Journey Medical Corp will utilize the new credit facility to fund operational expenses and potential growth initiatives. (Journey Medical Corp) — medium confidence, target: 2024-12-31
• The new credit facility will lead to improved liquidity for Journey Medical Corp. (Journey Medical Corp) — high confidence, target: 2024-06-30

FAQ

Key Financial Figures

• $20 million — the original principal amount of up to $20 million. On the Closing Date, the Company drew
• $15 million — . On the Closing Date, the Company drew $15 million. The remaining $5 million may be drawn
• $5 million — Company drew $15 million. The remaining $5 million may be drawn upon request by the Compan
• $70 million — ing twelve-month basis, is greater than $70 million as of December 31, 2025, principal repa
• $200,000 — ompany paid an origination fee equal to $200,000. The obligations under the Credit Faci

Filing Documents

• tm2333941d1_8k.htm (8-K) — 32KB
• tm2333941d1_ex99-1.htm (EX-99.1) — 13KB
• image_002.jpg (GRAPHIC) — 8KB
• 0001104659-24-000325.txt ( ) — 235KB
• derm-20231227.xsd (EX-101.SCH) — 3KB
• derm-20231227_lab.xml (EX-101.LAB) — 33KB
• derm-20231227_pre.xml (EX-101.PRE) — 22KB
• tm2333941d1_8k_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On December 27, 2023 (the " Closing Date "), Journey Medical Corporation (the " Company ") entered into a Credit Agreement (the " Credit Agreement "), by and among the Company and SWK Funding LLC and the other the financial institutions party thereto from time to time, as lenders. The Credit Agreement provides for a term loan facility (the " Credit Facility ") in the original principal amount of up to $20 million. On the Closing Date, the Company drew $15 million. The remaining $5 million may be drawn upon request by the Company within 12 months after the Closing Date. Loans under the Credit Facility (the " Term Loans ") mature on December 27, 2027 (the " Maturity Date ") unless the Credit Facility is otherwise terminated pursuant to the terms of the Credit Agreement. Beginning in February 2026, the Company is required to repay the outstanding principal of the Term Loans quarterly in an amount equal to 7.5% of the principal amount of funded Term Loans. If the total revenue of the Company, measured on a trailing twelve-month basis, is greater than $70 million as of December 31, 2025, principal repayment is not required until February 2027, at which point the Company is required to repay the outstanding principal of the Term Loans quarterly in an amount equal to 15% of the principal amount of funded Term Loans. The Term Loans bear interest at a rate per annum equal to the three-month term SOFR (subject to a SOFR floor of 5%) plus 7.75% (the " Loan Rate "). Upon an event of default under the Credit Agreement, the outstanding principal amounts of the Term Loans will accrue interest at a rate per annum equal to the Loan Rate plus three percent (3%), but in no event in excess of the maximum rate of interest allowed under applicable law. All accrued but unpaid interest on the outstanding Term Loans is payable quarterly until the Maturity Date when the then-outstanding principal balance of the Term Loans and all accr

01. Other Events

Item 8.01. Other Events. On January 2, 2024, the Company issued a press release announcing the entry into the Credit Agreement. The full text of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. The following exhibits are furnished herewith: Exhibit Number Description 99.1 Press release issued by Journey Medical Corporation, dated January 2, 2024. 104 Cover Page Interactive Data File, formatted in Inline Extensible Business Reporting Language (iXBRL).

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Journey Medical Corporation (Registrant) Date: January 2, 2024 By: /s/ Claude Maraoui Claude Maraoui Chief Executive Officer, President and Director

View Full Filing

View this 8-K filing on SEC EDGAR