Inotiv, Inc. Enhances Financial Stability with New Measures

Inotiv, Inc. Boosts Liquidity with Credit Agreement Amendments

Inotiv, Inc. (NASDAQ: NOTV), a prominent name in contract research, has made significant strides in enhancing its financial stability and liquidity. The company, recognized for its expertise in nonclinical and analytical drug discovery and development services, recently amended its Credit Agreement. This amendment arrives alongside the successful conclusion of a $22.6 million private offering of Senior Secured Second Lien PIK Notes and warrants for common shares.

Comments from Leadership

Robert Leasure Jr., President and CEO of Inotiv, shared insights on this strategic move. He emphasized the importance of increasing liquidity as a means to strengthen the company's balance sheet. The $22.6 million issued in Second Lien Notes is composed of $17 million in cash alongside the cancellation of approximately $8.3 million of existing convertible senior notes. Additionally, the Credit Agreement amendment incorporates financial covenant relief, offering flexibility until June 30, 2025, which will be vital as the company manages operational improvements and market recovery efforts.

Strategic Focus on Growth and Customer Experience

Inotiv's growth strategy over the past five years has centered on acquisitions and the introduction of new services aimed at providing comprehensive solutions for biopharma clients. This approach allows Inotiv to streamline drug discovery and development processes for its customers. Leasure reiterated the company's commitment to enhancing the customer experience, which remains crucial for improving customer acquisition and organic revenue growth.

Commitment to Financial Health

As Inotiv navigates these challenging market conditions, the company is also actively exploring ways to improve its balance sheet. By focusing on cash flow enhancement and market share expansion, Inotiv is positioning itself for a successful trajectory moving into the upcoming years.

Details of the Second Lien Note Offering

The Second Lien Notes issued by Inotiv carry a substantial interest rate of 15% per annum, which is payable in kind. They are fully secured by certain subsidiaries of the Company. Alongside this offering, investors are granted warrants to purchase a total of 3,946,250 common shares at an exercise price of $1.57 each, valid until September 13, 2034. The maturity date for these notes is set for February 4, 2027, unless they are redeemed beforehand.

Warrants and Additional Financial Insights

Moreover, as part of this financial strategy, the structuring agent receives a 2.5% fee, amounting to $0.6 million in Second Lien Notes. Inotiv's solid footing in the industry reflects its dedication not only to innovation but also to fiscal prudence, as it looks ahead to future opportunities and challenges.

Company Overview

Inotiv, Inc. stands at the forefront of the contract research field, providing critical services that span drug discovery and development phases. The company prioritizes efficiency and data improvement to lower the costs associated with bringing new drugs and medical devices to market. Inotiv collaborates closely with researchers, striving to support R&D initiatives that contribute to a healthier and safer world.

Contacting Inotiv

For further inquiries, interested parties can reach out to:

Inotiv, Inc.
Beth A. Taylor, Chief Financial Officer
Phone: (765) 497-8381
Email: beth.taylor@inotiv.com

Investor Relations
LifeSci Advisors
Bob Yedid
Phone: (516) 428-8577
Email: bob@lifesciadvisors.com

Frequently Asked Questions

What prompted Inotiv, Inc. to amend its Credit Agreement?

The amendment aimed to enhance liquidity and strengthen the company's financial position, aiding in operational improvements.

How much did Inotiv raise through the Second Lien Notes?

Inotiv secured $22.6 million through its offering of the Second Lien Notes and associated warrants.

What are the key features of the Second Lien Notes?

The notes have a 15% annual interest rate and mature on February 4, 2027, with the option for early redemption.

What is the company's focus moving forward?

Inotiv is focused on improving customer experience, enhancing revenue growth, and capturing market share in a competitive landscape.

Who can I contact for more information about Inotiv?

For details, you can reach out to Beth A. Taylor, Chief Financial Officer, or Investor Relations at LifeSci Advisors.

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