taxes, favorable tax items result in an increase in the effective tax rate, while unfavorable tax items result in a decrease in the effective tax rate.
Discontinued Operations
For the six months ended June 30, 2021 the Company recognized income from discontinued operations, net of tax, of $8.4 million. For the six months ended June 30, 2020 the Company recognized income from discontinued operations, net of tax of $22.4 million.
Liquidity and Capital Resources
Our principal sources of liquidity are cash and cash equivalents on hand. We had cash and cash equivalents of $99.8 million as of June 30, 2021. Our primary uses of cash are to fund operating expenses, product development costs, capital expenditures, and debt service payments.
As of June 30, 2021, the interest rate was 4.75% and 5.25% for our Term A Loan and Term B Loan, respectively. As of June 30, 2020, the interest rate was 4.82% and 5.32% for our Term A Loan and Term B Loan, respectively.
At June 30, 2021, we had $25 million available under the revolver, and there were no outstanding borrowings or outstanding letters of credit under the Revolver.
On January 13, 2020 we completed an equity offering and allotted 6.9 million ordinary shares at a public offering price of $5.00 per share. The number of shares issued in this offering reflected the exercise in full of the underwriters option to purchase 900,000 ordinary shares. The aggregate proceeds from the follow-on offering were approximately $31.8 million after deducting underwriting discounts and commissions and offering expenses. Proceeds from the offering were used for working capital and general corporate purposes.
On July 16, 2020 we completed a follow-on equity offering and allotted 5.0 million ordinary shares. The aggregate proceeds from the follow-on offering were approximately $30.4 million after deducting offering expenses. Proceeds from the offering will be used for working capital and general corporate purposes.
Going Concern
On June 25, 2021, we announced the pending divestiture of the Company’s portfolio of branded and non-promoted products and its Marietta, Georgia manufacturing facility, or the Legacy Business, to certain affiliates of Alora Pharmaceuticals for $110 million in cash upon closing, subject to certain adjustments, and up to $60 million in contingent milestone payments, or the Transaction. Pursuant to the Transaction we will retain the rights to Upneeq and to arbaclofen extended release tablets, which is under development for the treatment of spasticity in multiple sclerosis.
In connection with the divestiture of the Legacy Business, we entered into an amendment to our credit agreement (the “Credit Agreement Amendment”), which provided for the release of liens on the Legacy Business and (i) will reduce the outstanding term loan balance by $186.1 million to $30.0 million upon the closing of the Transaction, (ii) will terminate the revolving credit facilities (50% upon signing of the Credit Agreement Amendment and the remaining 50% upon closing of the Transaction), and (iii) will shorten the maturity of the remaining term loans to November 21, 2021. In addition, we agreed to transfer , upon the closing of the Transaction, substantially all of Osmotica Pharmaceuticals plc’s cash on hand to subsidiaries of the Company subject to the lien of the credit agreement. Additionally, we agreed to pay fees to the lenders based upon the outstanding principal balance of the term loans upon maturity of the remaining term loans.
The divestiture of the Legacy Business will result in the loss of substantially all of our revenue generating assets. Our current business plan is focused on the launch of Upneeq which, together with the divestiture of the Legacy Business will diminish our cash flows in the future. We will require additional capital to repay the remaining portion of out term loans, fund our operating needs, including the commercialization of Upneeq and other activities. We expect to incur significant expenditures and increasing operating losses for the foreseeable future.