Colorescience® Announces Successful Completion of $30 Million Debt Financing-Supporting Continued Growth in Core Channels
Carlsbad, CA (Sept 14, 2020) - (GLOBE NEWSWIRE) Colorescience, an industry- leading, science-based, and health-focused skincare company announced today the successful completion of a $30 Million debt financing with K2 HealthVentures (K2HV), a healthcare-focused specialty finance company. This debt facility strengthens the Company’s balance sheet in a non-dilutive fashion and increases financial flexibility to support continued growth in its core channels
Prior to the impact of COVID-19 in the second quarter of 2020, the Company had averaged over 35% revenue growth from 2017 through 2019, validating their omni- channel approach. Over the past two months, revenues have outpaced the 2019 levels demonstrating Colorescience’s ability to resume continued strong growth in 2021 and beyond.
“Throughout this process, the K2HV team has proven to have a thorough understanding of our business and the science driving our Colorescience products, and we look forward to continued collaboration.” stated Mary Fisher, Colorescience Chair and Chief Executive Officer.
Upon closing, Colorescience received the first tranche of $20 million and fully repaid the Company’s previous $17.5 million loan facility with Midcap Financial Services. A future acquisition tranche of up to $10 million will be available at the discretion of K2HV.
“We are excited to support Colorescience in their mission to bring innovative and environmentally-friendly skincare products to customers” said Parag Shah, Founding Managing Director and Chief Executive Officer of K2HV. “This investment follows our strategy of partnering with pioneering life sciences and healthcare companies with world class management that aim to improve individual outcomes and enhance public health more broadly.”
The Company also announced the rejoining of Rich Aldrich, a seasoned executive to its Board of Directors. Rich Aldrich is co-founder and General Partner of Longwood Fund and has spent approximately 35 years as a life sciences entrepreneur and investor. Rich co-founded and helped to build several successful biotech companies including Sirtris Pharmaceuticals; Concert Pharmaceuticals where he serves as Chair of the Board; and Longwood portfolio companies Alnara Pharmaceuticals, Verastem, Axial Biotherapeutics, and TScan Therapeutics. Rich also serves as a Director of Longwood portfolio companies
Axial, Renovia, and Sitryx Therapeutics. Prior to co-founding Longwood, Rich co-founded RA Capital Management, LLC, a life sciences investment fund, in which he remains an investor. Prior to RA Capital Management, he was a founding employee of Vertex Pharmaceuticals where he held the position of Senior Vice President and Chief Business Officer and managed all commercial and operating functions from 1989 to 2001. Prior to Vertex, he held several management positions at Biogen Inc. Rich received his undergraduate degree from Boston College and an MBA from the Amos Tuck School at Dartmouth College.
Colorescience® delivers clinically proven skin care and sun care innovations that are thoughtfully designed to improve overall skin health. Going beyond UV protection, Colorescience® believes in preventing skin damage before it starts with their clinically tested formulas that are trusted, recommended, and personally used by physicians and patients alike. Using cutting-edge innovation to formulate with efficacious ingredients, Colorescience® products deliver immediate and long-term results that provide confidence for all ages, skin types, and concerns.
Colorescience premium products are available through a network of licensed physicians and on colorescience.com.
ABOUT K2 HEALTHVENTURES
K2HV is an alternative investment firm focused on providing flexible, long-term financing solutions to innovative private and public companies in the life sciences and healthcare industries. The investment team is comprised of collaborative, experienced professionals with diverse backgrounds in finance and operations, as well as deep domain knowledge across various healthcare sectors. A uniquely flexible, permanent capital structure enables the firm to provide creative, adaptive financing solutions and to meet the evolving capital needs of its portfolio companies as they grow. K2HV is driven by dual goals of Profit and Purpose – aiming to fuel the growth of innovative companies that will ultimately improve the lives of patients and giving a percentage of investment profits back to underserved areas in healthcare.