Verrica Pharmaceuticals closes $27.5M credit facility with chairman

Verrica Pharmaceuticals Inc. (Nasdaq: VRCA) announced the closing of a credit facility of up to $27.5 million with an entity controlled by Paul B. Manning, the company's chairman and largest shareholder.

Under the terms of the agreement, Verrica may borrow up to $12.5 million immediately, with an additional $15.0 million available upon achieving certain revenue, growth, and operational milestones. Borrowings will bear interest at the one-month secured overnight financing rate (SOFR) plus 8.00% per annum, subject to a SOFR floor of 4.50%. All interest will be payable in kind, with a maturity date of December 31, 2030. No warrants were issued as part of the transaction.

The facility is intended to support the commercialization of YCANTH, a cantharidin-based drug-device combination product approved by the FDA to treat molluscum contagiosum, as well as a global Phase 3 program studying YCANTH for the treatment of common warts. The company said data readouts from two pivotal studies in the common warts program are expected by mid-2027.

Verrica said the full $27.5 million potentially available under the facility could extend its cash runway into 2028, based on its current operating plan. The credit facility is secured by substantially all of the company's assets and certain subsidiaries.

The credit agreement also requires mandatory prepayments with proceeds from certain transactions and quarterly payments if positive operating cash flow exceeds a specified amount.

Jayson Rieger, President and Chief Executive Officer of Verrica, said the facility "provides potential for no scheduled payments of interest or principal until maturity," adding that the structure would allow the company to direct cash resources toward its commercial and development activities.

Additional terms of the credit agreement are to be filed in Verrica's Quarterly Report on Form 10-Q, dated August 6, 2026.

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