THIS PRESS RELEASE CONTAINS INSIDE INFORMATION WITHIN THE MEANING OF ARTICLE (7)(1) OF THE EUROPEAN MARKET ABUSE REGULATION (596/2014)
Runway Progress Capital LLC is a number one U.S.-based specialty finance lender
Relationship additional strengthens Firm’s steadiness sheet forward of pending FDA approval and anticipated This autumn launch of ARC-EX System within the U.S.
EINDHOVEN, the Netherlands, June 28, 2024 (GLOBE NEWSWIRE) — ONWARD Medical N.V. (Euronext: ONWD), the medical expertise firm creating modern spinal twine stimulation therapies to revive motion, perform, and independence in individuals with spinal twine harm (SCI), broadcasts at present that the Firm and its subsidiaries, ONWARD Medical Inc. and ONWARD Medical S.A., signed a mortgage settlement within the quantity of as much as €52.5 million (the Mortgage Settlement) with U.S.-based lender Runway Progress Capital LLC (the Lender). The mortgage might be used to (i) repay the entire Firm’s excellent debt, (ii) fund the Firm’s upcoming business and medical actions, and (iii) for working capital and common company functions.
The power is split into 5 particular person credit score tranches. The primary preliminary credit score tranche of €16.0 million might be accessible upon signing of the Mortgage Settlement and might be drawn down instantly. Three subsequent credit score tranches of €14.0 million, as much as €5.0 million and as much as €7.5 million might be accessible to be drawn by the Firm till March 31, 2025, July 31, 2026 and January 31, 2027 respectively, in every case topic to the Firm’s achievement of sure milestones below the Mortgage Settlement. The fifth credit score tranche of as much as €10.0 million is uncommitted and accessible within the first quarter of 2027 upon the only real discretion of the Lender.
The mortgage bears curiosity at a fee equal to Time period Secured In a single day Financing Price (SOFR) for a 3 month curiosity interval (presently at 6.00% and topic to a 4.25% ground), plus a margin of 6.50%.
The mortgage paperwork present for quite a lot of affirmative and unfavourable covenants by the Firm customary for financings of this sort, together with monetary covenants regarding income, earnings earlier than curiosity taxes deprecition and amortization (EBITDA) and minimal liquidity targets. The loans superior below the Mortgage Settlement might be secured by a safety curiosity in considerably the entire property of the ONWARD Medical, N.V. and its subsidiaries.
As well as, upon signing of the debt financing the Firm will problem to the Lender warrants which can entitle the Lender to buy abnormal shares within the capital of the Firm at an train value per newly issued share calculated on the idea of the bottom 30 day volume-weighted common value (VWAP) between April 9, 2024 and the signing of the debt financing. The variety of shares topic to the warrants are 5 p.c (5.00%) of the drawn down principal quantity initially and upon every subsequent mortgage advance, divided by the train value of €4.83.
ONWARD is happy to enter this long-term relationship with one of many high U.S. lenders offering progress capital to modern life science corporations, mentioned ONWARD Medical CEO Dave Marver. This relationship will diversify our capital construction and assist to fund lots of our upcoming milestones, together with anticipated launch of our ARC-EX System later this yr and graduation of our pivotal examine for ARC-IM, known as Empower BP (NYSE:). We look ahead to working intently with Runway to supply gasoline to our effort to deliver options to the profound unmet wants of individuals with spinal twine harm.
We’re excited to associate with ONWARD Medical to supply capital for the continued improvement of their modern therapies bettering the lives of sufferers with spinal twine accidents, mentioned Greg Greifeld, Managing Director and Deputy Chief Funding Officer of Runway Progress Capital. Given our expertise within the healthcare area, we perceive the vital impression that developments in medical expertise can have on sufferers’ lives and this funding will assist ONWARD Medical obtain its upcoming milestones and revolutionize the usual of look after the spinal twine harm group.
ONWARD Medical was suggested by Stifel, a U.S-based full service funding financial institution.
All ONWARD ® Medical units and therapies, together with however not restricted to ARC-IM ®, ARC-EX ®, ARC-BCI™, and ARC Remedy™, alone or together with a brain-computer interface (BCI), are investigational and never accessible for business use.
About ONWARD Medical
ONWARD ® Medical is a medical expertise firm creating therapies to revive motion, perform, and independence in individuals with spinal twine harm (SCI) and motion disabilities. Constructing on greater than a decade of scientific discovery, preclinical, and medical analysis carried out at main hospitals, rehabilitation clinics, and neuroscience laboratories, the Firm has developed ARC Remedy™, which has been awarded ten Breakthrough Gadget Designations from the US Meals and Drug Administration (FDA).
ONWARD ARC Remedy is focused, programmed spinal twine stimulation designed to be delivered by the Firm’s exterior ARC-EX ® or implantable ARC-IM ® platforms. ARC Remedy will also be delivered by the Firm’s ARC-BCI™ platform, which pairs the ARC-IM System with brain-computer interface (BCI) expertise to revive motion after SCI with thought-driven management.
Use of non-invasive ARC-EX Remedy considerably improved higher limb perform after SCI within the world pivotal Up-LIFT trial, with outcomes revealed by Nature Medication in Could 2024. The Firm has submitted its regulatory utility to the FDA for clearance of the ARC-EX System within the US and is getting ready for regulatory submission in Europe. In parallel, the Firm is conducting medical research with its ARC-IM Remedy, which demonstrated optimistic interim medical outcomes for improved blood stress regulation following SCI. Different ongoing medical research concentrate on utilizing ARC-IM Remedy to deal with mobility after SCI and gait challenges in Parkinson’s illness in addition to utilizing the ARC-BCI platform to revive thought-driven motion of each higher and decrease limbs after SCI.
Headquartered in Eindhoven, the Netherlands, ONWARD Medical has a Science and Engineering Middle in Lausanne, Switzerland and a US workplace in Boston, Massachusetts. The Firm is listed on Euronext Brussels and Amsterdam (ticker: ONWD).
For extra data, go to ONWD.com, and join with us on LinkedIn and YouTube.
About Runway Progress Capital LLC
Runway Progress Capital LLC is the funding advisor to funding funds, together with Runway Progress Finance Corp (NASDAQ:). (Nasdaq: RWAY), a enterprise improvement firm, and different non-public funds, that are lenders of progress capital to corporations in search of a substitute for elevating fairness. Led by trade veteran David Spreng, these funds present senior time period loans of $10 million to $75 million to fast-growing corporations based mostly in the USA, Canada, and Europe. For extra data on Runway Progress Capital LLC and its platform, please go to our web site at www.runwaygrowth.com
For ONWARD Medical Media Inquiries:
Aditi Roy, VP Communications
[email protected]
For ONWARD Medical Investor Inquiries:
Amori Fraser, Finance Director
[email protected]
For Runway Progress Media Inquiries:
Jason Holley, Senior Director
[email protected]
For Runway Progress Investor Inquiries:
Stefan Norbom, Senior Vice President
[email protected]
Disclaimer
Sure statements, beliefs, and opinions on this press launch are forward-looking, which replicate the Firm’s or, as applicable, the Firm administrators’ present expectations and projections about future occasions. By their nature, forward-looking statements contain a number of dangers, uncertainties, and assumptions that would trigger precise outcomes or occasions to vary materially from these expressed or implied by the forward-looking statements. These dangers, uncertainties, and assumptions might adversely have an effect on the result and monetary results of the plans and occasions described herein. A large number of things together with, however not restricted to, adjustments in demand, competitors, and expertise, may cause precise occasions, efficiency, or outcomes to vary considerably from any anticipated improvement. Ahead-looking statements contained on this press launch concerning previous developments or actions shouldn’t be taken as a illustration that such developments or actions will proceed sooner or later. In consequence, the Firm expressly disclaims any obligation or enterprise to launch any replace or revisions to any forward-looking statements on this press launch on account of any change in expectations or any change in occasions, circumstances, assumptions, or circumstances on which these forward-looking statements are based mostly. Neither the Firm nor its advisers or representatives nor any of its subsidiary undertakings or any such particular person’s officers or workers ensures that the assumptions underlying such forward-looking statements are free from errors nor does both settle for any accountability for the long run accuracy of the forward-looking statements contained on this press launch or the precise incidence of the forecasted developments. You shouldn’t place undue reliance on forward-looking statements, which converse solely as of the date of this press launch. All ONWARD Medical units and therapies referenced right here, together with however not restricted to ARC-IM ®, ARC-EX ®, ARC-BCI™ and ARC Remedy™, are investigational and never accessible for business use.
Supply: ONWARD Medical NV