Evolus Strengthens Balance Sheet Through a $25.5 Million Cash Infusion and Elimination of $127.4 Million of Debt and Milestone Payments

Pro Forma Cash Position of $57 Million at December 31, 2020¹

NEWPORT BEACH, Calif., March 23, 2021 (GLOBE NEWSWIRE) -- Evolus, Inc. (Nasdaq: EOLS), a performance beauty company with a customer-centric approach focused on delivering breakthrough products, today announced several transactions entered into with its strategic partner Daewoong Pharmaceutical Co. Ltd. (“Daewoong”) which further strengthen the Company’s balance sheet and financial position.

“We appreciate the financial commitments from our strategic partner Daewoong which allow us to invest directly into accelerating the growth of our neurotoxin business,” said David Moatazedi, President and Chief Executive Officer. “With this announcement, we have resolved all legal matters relating to the International Trade Commission case with all parties and have a heightened focus on driving the growth of Jeuveau in the United States with plans to expand internationally with our European launch of Nuceiva in early 2022.”  

“Another core component of our settlement efforts and 2021 strategy has been the restructuring of our balance sheet,” said Lauren Silvernail, Chief Financial Officer and Executive Vice President, Corporate Development. “We had previously announced the elimination of $76.4 million in senior debt from Oxford Finance in January 2021. Today, we are announcing the additional reduction of $40.5 million in convertible debt, as our partner Daewoong decided to early convert its debt into Evolus common shares. Daewoong further agreed to pay Evolus $25.5 million in cash and eliminate $10.5 million of current and potential future milestone payments. All combined, the restructuring completed this quarter leaves Evolus stronger with a pro forma cash position at December 31, 2020 of approximately $57 million¹ and elimination of $127.4 million in debt and milestone payments. We look forward to providing a detailed financial update on our 2020 year-end earnings call later this month.”

Details of First Quarter 2021 Restructuring

• $25.5 million cash payment from Daewoong to Evolus
• $127.4 million elimination of Evolus debt and potential future milestone payments
  • In January 2021, Evolus, Inc. paid $76.4 million to discharge in full all outstanding obligations, including accrued interest, under its 2019 Loan and Security Agreement with Oxford Finance
  • Daewoong will convert $40.5 million of debt and accrued interest thereon into approximately 3.1 million shares of Evolus common stock
  • $10.5 million of current and potential future milestone payments eliminated by Daewoong
• Combination of actions results in approximately $57 million of pro forma cash and investments at December 31, 2020¹

Additional details on the transactions announced today with Daewoong are available on the Current Report on Form 8-K filed by the company with the Securities and Exchange Commission today.