Mr. Philippe Dubuc reports

THERATECHNOLOGIES ANNOUNCES FINALIZATION OF AMENDMENTS TO SOME OF THE TERMS AND CONDITIONS OF ITS CREDIT AGREEMENT WITH MARATHON

Theratechnologies Inc. has finalized all documentation giving effect to the amendments to certain of the terms and conditions of its credit agreement dated July 20, 2022, as amended from time to time, with certain funds and accounts for which Marathon Asset Management LP acts as investment manager.

The amendments to the credit agreement provide for, inter alia:

• Revising the minimum liquidity requirements for all times following Oct. 31, 2023, to be between $15-million (U.S.) and $20-million (U.S.), based on thresholds for adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) over the most recently ended four fiscal quarters;
• Revising the minimum revenue requirements to be based on adjusted EBITDA-based targets instead of quarterly revenue-based targets, beginning with the quarter ending Nov. 30, 2023;
• Deleting the prohibition against the company having a going-concern explanatory paragraph in the opinion of the independent registered public accounting firm of the company that accompanies the company's annual report.

As disclosed in its Sept. 25, 2023, press release, in consideration of the proposed amendments, the company agreed to (i) pay an amount equal to $600,000 (U.S.), or 100 basis points calculated on the outstanding principal amount of the financed debt as of Oct. 16, 2023 ($60-million (U.S.)), which such amount was added to the outstanding principal amount of the financed debt as payment in kind; and (ii) reprice the exercise price of the common share purchase warrants held by Marathon to 57.5 U.S. cents per share from $1.45 (U.S.) per share. Following the share consolidation completed on July 31, 2023, the exercise of four warrants and the payment of $2.30 (U.S.) are required to subscribe to one common share of Theratechnologies, for up to a maximum issuance of 1.25 million common shares. The warrants can be exercised until Feb. 27, 2030.

About Theratechnologies Inc.

Theratechnologies is a biopharmaceutical company focused on the development and commercialization of innovative therapies addressing unmet medical needs.

We seek Safe Harbor.