A pair of small-cap medical device companies have raised a total of $56 million in debt. Cerus ($CERS) got a $30 million credit facility from Oxford Finance to fund FDA approval and marketing for its product, while Amedica ($AMDA), which makes spinal and joint implants using silicon nitride, got $26 million in debt.
Tranches for Cerus' credit facility from Oxford Finance are tied closely to its Intercept Blood System. Of the $30 million, $10 million is immediately available. The next $10 million becomes available upon an FDA approval of a PMA for Intercept. The final $10 million becomes available in the second half of 2015 and is contingent upon pre-specified, undisclosed revenue milestones.
The Intercept Blood System is designed to reduce the risk of transfusion-transmitted diseases by inactivating a broad range of pathogens such as viruses, bacteria and parasites that may be present in donated blood. It's the first system that can treat both platelets and plasma, according to the company.
In December, Cerus said it submitted the final PMA module for Intercept for plasma and that it would do so for Intercept for platelets in March. At that time, the company said it hoped to achieve FDA approval and launch this year.
"This non-dilutive facility and the access to significant capital in a phased approach provides us with the flexibility and resources to execute the activities necessary for a successful and aggressive North American launch, as well as supporting further expansion of Intercept global commercial markets," Cerus VP of Finance and CFO Kevin Green said in a statement. The system is already marketed in some ex-U.S. regions, including the EU. The company had $38 million in revenues during the most recent 12 months that it has reported.
As for Amedica, which had a $20 million IPO in February, it scored a $20 million debt financing from Hercules Technology Growth Capital and a $6 million, 6% convertible note deal with MG Partners, an affiliate of Magna. About $15.2 million of the proceeds will go to retiring Amedica's credit facility with General Electric. The remainder will help it commercialize and develop its silicon nitride spinal fusion products and joint replacement candidates. Amedica has trailing 12-month revenues of $22.4 million.
The Hercules loan has a 12-month interest-only payment period through July 1, 2015, with the potential to extend this to 18 months. The loan matures on Jan. 1, 2018. Hercules also gets a warrant to purchase up to 516,129 shares at $4.65 per share. Magna will purchase $2.5 million in convertible notes and then an additional $3.5 million after sales are registered for sale. Magna also receives 568,889 warrants at an exercise price of $4.65 each.
- here is the Cerus press release
- and here is the Amedica press release