Acura Pharmaceuticals Secures Funding Amid Financial Pressures

Acura Pharmaceuticals, Inc. (OTCMKTS:ACUR) recently finalized key financial agreements to address pressing liquidity concerns. In a Form 8-K filing submitted to the Securities and Exchange Commission on November 2, 2024, Acura Pharmaceuticals confirmed the receipt of $100,000 loans on both October 11 and October 28 from Abuse Deterrent Pharma, LLC (AD Pharma). These funds, in conjunction with prior loans and an existing promissory note, have bolstered Acura’s principal balance to $6,719,279, plus accrued interest of approximately $463,000 as of October 31, 2024. The loans carry an interest rate of 5.25%.

The financing facilitated by AD Pharma will be primarily allocated towards daily operational expenses. However, the company highlighted the uncertainty of securing additional financing. Should further funding not materialize by mid-November 2024, Acura may be compelled to downsize operations, potentially including employee furloughs or layoffs, or even explore protective measures under bankruptcy laws. Such actions could result in a substantial loss of shareholder value for the company.

On a more positive note, Acura Pharmaceuticals inked a pivotal agreement with AD Pharma on November 2, 2024, amending an existing License, Development, and Commercialization Agreement for the LTX-03 immediate-release tablets. LTX-03, based on Acura’s patented LIMITx technology, endeavours to mitigate the risks associated with excessive oral intake of opioid tablets, a prevalent contributor to opioid overdose and misuse. The recent amendment extends the FDA’s acceptance deadline for a New Drug Application (NDA) for LTX-03 from October 31, 2024, to February 28, 2025.

The agreement outlines clauses allowing AD Pharma to terminate the contract at any time, with provisions triggered if the NDA for LTX-03 fails to gain FDA approval by the stipulated deadline. In such a scenario, AD Pharma could assume ownership of the intellectual property rights pertaining to LTX-03. However, should the NDA secure FDA approval post-deadline, the termination option ceases to be applicable.

Further amendments include the extension of the maturity date of the Amended Note with AD Pharma from October 31, 2024, to February 28, 2025. Despite these amendments, Acura Pharmaceuticals continues to grapple with financial challenges, underscored by the impending obligations and uncertainties surrounding additional financing, operational sustainability, and regulatory approvals.

Investors and market watchers are advised to exercise caution with Acura Pharmaceuticals’ stock, considering the intricate financial landscape and pending regulatory milestones ahead.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Acura Pharmaceuticals’s 8K filing here.

About Acura Pharmaceuticals

Acura Pharmaceuticals, Inc, an innovative drug delivery company, engages in the research, development, and commercialization of technologies and products to address safe use of medications in the United States. It offers Oxaydo tablets, a Schedule II narcotic indicated for the management of acute and chronic moderate to severe pain; and Nexafed products, which are pseudoephedrine and acetaminophen tablets that are used as nasal decongestants in various non-prescription and prescription cold, sinus, and allergy products.