Knight Therapeutics Inc. and CRH Medical Corporation Sign Secured Debt Financing Agreement

MONTREAL, CANADA--(Marketwired - Dec. 2, 2014) - Knight Therapeutics Inc. (TSX:GUD) ("Knight"), a leading Canadian specialty pharmaceutical company, announced today that it has entered into a senior secured debt agreement with CRH Medical Corporation (TSX:CRH)(OTCQX:CRMMF) ("CRH"), a North American medical company focused on providing physicians with innovative products and services for the treatment of gastrointestinal diseases. This secured loan will fund CRH's acquisition of Gastroenterology Anesthesia Associates, LLC and GAA Management, LCC, collectively a Southeast US-based Anesthesia services provider ("GAA").

Knight's secured loan of USD$30 million will be complemented by (i) a sub-secured loan of CAD$22.5 million from Crown Capital, (ii) an unsecured loan of USD$2 million from the Bloom Burton Healthcare Structured Lending Fund II, (iii) an equity financing of CRH common shares raising USD$5 million, (iv) and CRH cash on hand.

The secured loan issued by Knight to CRH will bear interest at a rate of 10% per annum plus other additional consideration. The loan matures on December 1, 2016 and will be extended for one year should CRH meet profitability milestones. The loan is secured by a charge over the assets of CRH and GAA. In addition, Knight has been issued 3,000,000 common shares in the capital of CRH.

"We are thrilled to partner with Knight, a patient lender with proven abilities to build companies, to complete this acquisition by CRH of GAA, which marks our entrance into the lucrative U.S. gastroenterologist services space," said Edward Wright, CEO of CRH.

"Over the past 18 quarters, CRH has proven its ability to consistently grow sales and profits, and we are pleased to support CRH in this reliably profitable U.S. anesthesia services acquisition," said Jonathan Ross Goodman, President and CEO of Knight.

About Knight Therapeutics Inc.

Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and world markets. Knight Therapeutics' shares began trading on TSX-V on March 3, 2014 and graduated to TSX on April 29, 2014 under the symbol GUD. For more information about Knight Therapeutics Inc., please visit the company's web site at http://www.gud-knight.com or at http://www.sedar.com.

About CRH Medical Corporation

CRH Medical Corporation is a North American company focused on providing physicians with innovative products for the treatment of gastrointestinal diseases. The Company's product, the CRH O'Regan System, is a single-use, disposable, hemorrhoid treatment that is rapidly emerging as the standard of care with gastroenterologists who treat hemorrhoids. In addition to the product, CRH Medical delivers clinical, marketing and operational support directly to its partner physicians.

About Crown Capital Partners Inc.

Crown Capital Partners ("Crown Capital") is a Toronto and Calgary-based investment manager specialized in providing innovative and alternative debt solutions for Canadian growth businesses. Crown Capital's team looks through to the value of the underlying business and then partners with management to ensure the optimal capital solution is provided in support of the business. Crown Capital typically invests $5 million to $25 million in any one transaction and is capable of financing significantly larger transactions via instruments such as subordinated term and bridge loans for acquisitions, management buy-outs, growth financings and recapitalizations. Please visit http://www.crowncapital.ca to learn more.

About Bloom Burton & Co.

Bloom Burton & Co. is an investment-banking firm dedicated to accelerating returns for both investors and companies in the healthcare sector. Bloom Burton has an experienced team of medical, scientific, pharmaceutical, legal and capital markets professionals who perform a deep level of diligence, which combined with a creative and entrepreneurial approach, assists our clients in reaching the appropriate monetization events. Bloom Burton and its affiliates provide capital raising, M&A advisory, equity research, business and scientific consulting services, direct investing and company formation and incubation services. Please visit www.bloomburton.com to learn more.

Knight Therapeutics Forward Looking Statement

This press release may contain forward-looking statements and predictions. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions that these assumptions regarding the future events, many of which are beyond the control of the Company and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations, are discussed in the Listing Application dated February 21, 2014 and two short form prospectuses, each of which is dated April 17, 2014. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events, except as required by law.