Zevra Therapeutics Enters New Agreement, Terminates Old One

TL;DR

Zevra just signed a new deal and ditched an old one, creating new financial obligations.

AI Summary

On April 4, 2024, Zevra Therapeutics, Inc. entered into a Material Definitive Agreement and simultaneously terminated a prior Material Definitive Agreement. The company also incurred a direct financial obligation. This filing is considered a Regulation FD Disclosure.

Why It Matters

This filing indicates a significant shift in Zevra Therapeutics' contractual relationships, potentially impacting its financial obligations and strategic direction.

Risk Assessment

Risk Level: medium — The termination of a material agreement and the creation of new financial obligations suggest potential changes in the company's operational or financial stability.

Key Players & Entities

• Zevra Therapeutics, Inc. (company) — Registrant
• April 4, 2024 (date) — Date of Earliest Event Reported

FAQ

Key Financial Figures

• $100.0 million — ny in the aggregate principal amount of $100.0 million (the "Debt Financing"). The Debt Financ
• $60.0 million — ded into three tranches as follows: (i) $60.0 million which was funded in full on the Closing
• $20.0 million — losing Date (the "First Tranche"); (ii) $20.0 million which is available to the Company in up
• $10.0 m — awings, each in an amount not to exceed $10.0 million, at the Company's option until 18
• $100.0 m — uct sales for such calendar year exceed $100.0 million, the Outstanding Principal Amount
• $125.0 m — 2026, in which net product sales exceed $125.0 million, the Outstanding Principal Amount

Filing Documents

• zvra20240409_8k.htm (8-K) — 39KB
• 0001437749-24-011571.txt ( ) — 175KB
• zvra-20240410.xsd (EX-101.SCH) — 3KB
• zvra-20240410_def.xml (EX-101.DEF) — 12KB
• zvra-20240410_lab.xml (EX-101.LAB) — 15KB
• zvra-20240410_pre.xml (EX-101.PRE) — 12KB
• zvra20240409_8k_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On April 5, 2024 (the "Closing Date"), Zevra Therapeutics, Inc., a Delaware corporation ("Zevra" or the "Company"), as the borrower, entered into a credit agreement (the "Credit Agreement") among the Company, Acer Therapeutics, Inc., a Delaware corporation ("Acer"), Epyon Therapeutics, Inc., a Delaware corporation ("Epyon"), and Zevra Denmark A/S, a public limited liability company organized under the laws of Denmark (together with Acer and Epyon, collectively, the "Guarantors"), HCR Stafford Fund II, L.P., HCR Potomac Fund II, L.P., and Perceptive Credit Holdings IV, LP as lenders (collectively, the "Lenders"), and Alter Domus (US) LLC, as administrative agent (the "Administrative Agent"). Under the terms of the Credit Agreement and related documentation, the Lenders provided a senior secured loan facility to the Company in the aggregate principal amount of $100.0 million (the "Debt Financing"). The Debt Financing is divided into three tranches as follows: (i) $60.0 million which was funded in full on the Closing Date (the "First Tranche"); (ii) $20.0 million which is available to the Company in up to two drawings, each in an amount not to exceed $10.0 million, at the Company's option until 18 months following the Closing Date (the "Second Tranche"); and (iii) $20.0 million which is available to the Company upon approval by the United States Food and Drug Administration of the New Drug Application for arimoclomol for the treatment of Niemann-Pick disease Type C, at the Company's option until December 31, 2024 (the "Third Tranche" and together with the First Tranche and the Second Tranche, the "Tranches" and each a "Tranche", and each borrowing, a "Term Loan" and collectively, the "Term Loans"). Funding of the Second Tranche and the Third Tranche will be dependent upon the Company having satisfied certain conditions precedent. The principal amount of the Term Loans outstanding from time to time (the "Outstand

02 Termination of a Material Definitive Agreement

Item 1.02 Termination of a Material Definitive Agreement. On April 4, 2024, in connection with the Debt Financing, the Company delivered to Nantahala Capital Management, LLC ("NCM"), certain of its affiliates and certain other parties (collectively with NCM, "Nantahala") a payoff letter in connection with its repayment of amounts outstanding under the Note Purchase Agreement with Nantahala (the "Note Purchase Agreement"), dated August 30, 2023. The Note Purchase Agreement was terminated and repaid in full as of April 8, 2024. The material terms of the Note Purchase Agreement were previously disclosed in a Current Report on Form 8-K filed with the Securities and Exchange Commission by the Company on August 31, 2023, and are incorporated by reference herein. Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth above under Item 1.01 is hereby incorporated by reference into this Item 2.03.

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. On April 5, 2024, the Company repaid the outstanding balance under its margin account with Wells Fargo, as lender, and upon such repayment, the margin capabilities were removed from the account.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Zevra Therapeutics, Inc . Date: April 10, 2024 By: /s/ Timothy J. Sangiovanni Timothy J. Sangiovanni, CPA Senior Vice President, Corporate Controller

View Full Filing

View this 8-K filing on SEC EDGAR