SUNNYVALE, Calif., Jan. 6 /PRNewswire-FirstCall/ -- Pharmacyclics, Inc. (Nasdaq: PCYC) today announced that in preparation of further equity offerings, Robert W. Duggan & Associates ("RWD") made an unsecured loan to Pharmacyclics, Inc. on December 30, 2008, in the amount of $5,000,000. As of December 31, 2008, the company's cash and cash equivalents totaled approximately $12.9 million, including the $5,000,000 in loan proceeds. RWD is controlled by Pharmacyclics' Chairman of the Board and interim Chief Executive Officer, Chief Financial Officer and Secretary, Robert W. Duggan. Mr. Duggan is the beneficial owner of approximately 29% of Pharmacyclics' outstanding common stock.
Under the terms of the loan, Pharmacyclics is to pay RWD the principal sum of $5,000,000 on the earlier of (i) July 1, 2010 or (ii) upon the closing of an equity offering or rights offering by Pharmacyclics. The loan bears interest as follows: (i) 1.36% from December 30, 2008 until March 31, 2009, (ii) the rate of interest in effect for such day as publicly announced from time to time by Citibank N.A. as its "prime rate" from April 1, 2009 until December 31, 2009 and (iii) the prime rate plus 2% from January 1, 2010 until the expiration of the loan. Interest is to be paid annually.
Mr. Duggan commented, "While the global economy is in unchartered waters
and forecasts concerning the future are all over the map, it is important to
keep in mind that companies like Pharmacyclics continue to discover and
develop innovative medicines to treat serious, unmet worldwide medical needs.
As a practical matter almost every country, company, organization and
individual that make up this economy of ours is presently very engaged in
plotting a course of action that creates prosperity and forward progress for
their shareholders, for their employees,
|SOURCE Pharmacyclics, Inc.|
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