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Unilife Announces Additional Financing of up to $10 Million from OrbiMed and Implements an Additional Cost Reduction Initiative




YORK, Pa., Oct. 16, 2015 /PRNewswire/ -- Unilife Corporation ("Unilife" or "Company") (NASDAQ: UNIS, ASX: UNS) today announced the signing of an agreement with an affiliate of OrbiMed for the provision of up to an additional $10 million in debt financing. The material terms are described in a Form 8-K filed by the Company with the SEC today.

In addition, Unilife this week implemented an additional cost reduction initiative, including a significant decrease in executive compensation, to further reduce the Company's operating expenses in order to maximize shareholder value in connection with the continuing review of strategic alternatives, for which Morgan Stanley & Co. LLC is engaged as its financial advisor, and to improve the Company's liquidity position.

In September, Unilife initiated a cost reduction and business alignment plan that included a reduction in its workforce of approximately 17%. This week, the Company implemented additional measures, including a further reduction to its workforce of approximately 20 employees, or 8% of its workforce.

Additionally, the Company will decrease its compensation to certain executive officers and some other senior management through the end of this calendar year. Alan Shortall, Unilife Chairman and Chief Executive Officer, has agreed to a 100% reduction of his base salary and the elimination of perquisites, through December 31, 2015. David Hastings, Chief Financial Officer, Dr. Ramin Mojdeh, President and Chief Operating Officer, John Ryan, General Counsel and Secretary, and Dennis Pyers, Chief Accounting Officer and Treasurer, have agreed to a 50% reduction in their base salaries and the elimination of perquisites, through December 31, 2015. Various other senior employees of Unilifehave also agreed to a reduction in their base salaries through December 31, 2015.

Together, the most recent additional cost reduction measures and the decreases to executive compensation described above and more fully in the Form 8-K referenced above are expected to reduce the Company's expenses, net of severance costs, by $0.7 million through December 31, 2015.



Guys we've been asking for the management team to get real over the last few months. This signals to me that they are serious about whatever is going on behind the scenes. They look like they are prepared to collectively play hardball to get a result that they want.
Well done, it's a step in the right direction.