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Subsequent Events
12 Months Ended
Dec. 31, 2015
Subsequent Events  
Subsequent Events

19.  Subsequent Events

 

Mortgage Payable with East West Bank—Due February 2021

 

In January 2016, the Company refinanced the existing mortgage term loan with East West Bank, which had a principal balance outstanding of $3.7 million at December 31, 2015. The loan is payable in monthly installments with a final balloon payment of $3.3 million. The loan is secured by one of the buildings at the Company’s Rancho Cucamonga, California, headquarters complex. The loan has a variable interest rate at the prime rate as published by The Wall Street Journal. Subsequently, the Company entered into a fixed interest rate swap contract on this loan to exchange the variable interest rate for a fixed interest payment over the life of the loan without the exchange of the underlying notional debt amount. The loan bears interest at a fixed rate of 4.39%, and matures in February 2021.

 

Acquisition of Nanjing Letop Medical Technology Co. Ltd.

 

In January 2016, the Company’s subsidiary ANP acquired Nanjing Letop Medical Technology Co. Ltd. or Letop, for $0.7 million. Letop had previously supplied ANP with intermediates used in making various active pharmaceutical ingredients. The Company has concluded that this transaction will be accounted for as a business combination in accordance with ASC 805.

 

Acquisition of fourteen injectable products from Hikma Pharmaceuticals PLC

 

In March 2016, the Company acquired fourteen ANDAs, representing eleven different injectable chemical entities from Hikma Pharmaceuticals PLC for $4.0 million.  The Company plans to transfer the products to its facilities in California, which will require FDA approval before the products can be launched.