Botanix Pharmaceuticals (ASX:BOT) and its wholly-owned unit Botanix Pharmaceuticals entered into documentation with Kreos Capital VII (UK) and its related entities for a loan facility of up to the euro equivalent of $30 million, according to a Tuesday Australian bourse filing.

The facility provides for an initial tranche of around AU$31 million available upon closing and expected to be drawn down on Tuesday. A further tranche of around AU$15.5 million will be available to be drawn down up to and including Oct. 1, 2026, subject to drawdown conditions.

The facility is subject to financial, corporate, and operating covenants customary for these types of arrangements, the filing said. The loan is secured by the assets of Botanix and its units.

Kreos Capital will have the option to convert part of the loan into fully paid ordinary shares in the firm under certain conditions. Botanix will issue to Kreos Capital warrants to acquire shares in the firm, each with an exercise price of AU$0.33 and with an expiry date five years from the date of issue, in conjunction with the facility. Three million warrants will be issued on the drawdown of the first tranche, and another 1.5 million warrants will be issued on the satisfaction of the second tranche conditions.

The funds will be used for general working capital and the commercialization of the Sofdra topical gel, the filing said.

Botanix Pharmaceuticals' shares jumped nearly 7% in recent trading on Tuesday.