Labopharm amends loan accord with Hercules

Hercules Technology Growth Capital has agreed to extend both the period of interest-only payments and maturity date of a loan to Labopharm (TSX:DDS; NASDAQ:DDSS), which will provide Labopharm with $4.5 million in additional liquidity in 2010 and throughout 2011.

Under the amended agreement, Hercules has extended the period for Labopharm to make interest-only payments on the loan to Dec. 31, 2010, from June 30, 2010. Hercules has also extended the maturity date of the loan to Dec. 1, 2012, from June 1, 2012.

Labopharm said the amendment provides it with additional cash resources and financial flexibility during the initial commercialization phase for Oleptro, its once-daily formulation of the antidepressant trazodone, which will be launched in the U.S. this quarter as planned by its joint venture with Gruppo Angelini.