Fennec Pharmaceuticals Inc. announced on November 19 2025 that it had completed the redemption of all outstanding convertible notes issued to Petrichor Opportunities Fund I LP and Petrichor Opportunities Fund I Intermediate LP. The redemption transaction itself closed on November 17, 2025, and was funded with proceeds from a $40.25 million public offering that closed on November 17 and a $5.025 million private placement that closed on November 18.
The company paid a total of $21.73 million to retire the notes, comprising $19.48 million in principal, $305,134 in accrued interest, and a $1.95 million redemption fee. This payment eliminates the company’s remaining debt obligations, leaving Fennec with no outstanding convertible notes and a cleaner balance sheet. The redemption also removes future interest payments that were tied to the prime rate plus a 4.5 % margin with a 3.5 % floor, thereby reducing interest expense and improving cash‑flow stability.
The debt elimination follows a prior repurchase of $13 million of notes in December 2024, underscoring the company’s ongoing strategy to de‑lever its balance sheet. By removing all debt, Fennec can redirect capital toward the commercialization of its flagship product, PEDMARK, and support its international partnership with Norgine for markets in Europe, the UK, Australia, and New Zealand. The company’s focus on expanding PEDMARK’s use in adolescent and young‑adult oncology aligns with its broader growth objectives.
The redemption also signals confidence in the company’s financial position. With no outstanding debt, Fennec can pursue additional financing on more favorable terms if needed, and the reduction in interest expense frees cash that can be reinvested in research, development, and market expansion. The move is expected to enhance investor confidence by improving leverage ratios and providing greater flexibility for future growth initiatives.
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