Vericel Enters Into $10 Million Credit Facility and $5 Million Term Loan Agreement With Silicon Valley Bank
March 09 2016 - 8:00AM
Vericel Corporation (NASDAQ:VCEL), a leading developer of
patient-specific expanded cellular therapies for the treatment of
severe diseases and conditions, announced today that it has entered
into a term loan and revolving line of credit agreement with
Silicon Valley Bank, providing access to up to $15 million of new
capital to the company to be used for general corporate purposes.
Additional details concerning the credit facility and term
loan will be contained in the company’s Current Report on Form 8-K
to be filed shortly with the Securities and Exchange Commission.
"We are pleased to forge this new partnership with Silicon
Valley Bank," said Vericel’s chief financial officer and vice
president of corporate development Gerard Michel. "These loan
facilities provide the flexibility, at a low cost of capital, to
invest in our key future growth drivers, Epicel and MACI, without
diluting our current shareholders.”
Katherine Andersen, Managing Director of Silicon Valley Bank,
commented, “We are pleased to partner with Vericel as the company
works to expand its portfolio of cell therapy products. Our
aim is to provide Vericel with the right financing tools to advance
its product portfolio and position the company to meet its
corporate objectives.”
About Vericel Corporation
Vericel Corporation is a leader in developing patient-specific
expanded cellular therapies for use in the treatment of patients
with severe diseases and conditions. The company markets two
autologous cell therapy products in the U.S.: Carticel® (autologous
cultured chondrocytes), an autologous chondrocyte implant for the
treatment of cartilage defects in the knee, and Epicel® (cultured
epidermal autografts), a permanent skin replacement for the
treatment of patients with deep-dermal or full-thickness burns
comprising greater than or equal to 30% of total body surface
area. Vericel is also developing MACI™, a third-generation
autologous chondrocyte implant for the treatment of cartilage
defects in the knee, and ixmyelocel-T, a patient-specific
multicellular therapy for the treatment of advanced heart failure
due to ischemic dilated cardiomyopathy. For more information,
please visit the company’s website at
www.vcel.com.
Epicel® and Carticel® are registered trademarks and MACI™ is a
trademark of Vericel Corporation. © 2016 Vericel
Corporation. All rights reserved.
About Silicon Valley Bank
For more than 30 years, Silicon Valley Bank (SVB) has helped
innovative companies and their investors move bold ideas forward,
fast. SVB provides targeted financial services and expertise
through its offices in innovation centers around the world. With
commercial, international and private banking services, SVB helps
address the unique needs of innovators.
©2016 SVB Financial Group. All rights reserved. Silicon Valley
Bank is the California bank subsidiary of SVB Financial Group.
Silicon Valley Bank is a member of FDIC and Federal Reserve
System.
This document contains forward-looking statements, including,
without limitation, statements concerning anticipated profitability
and objectives and expectations regarding our company described
herein, all of which involve certain risks and uncertainties. These
statements are often, but are not always, made through the use of
words or phrases such as "anticipates," "intends," "estimates,"
"plans," "expects," "we believe," "we intend," and similar words or
phrases, or future or conditional verbs such as "will," "would,"
"should," "potential," “can continue,” "could," "may," or similar
expressions. Actual results may differ significantly from the
expectations contained in the forward-looking statements. Among the
factors that may result in differences are the inherent
uncertainties associated with competitive developments, clinical
trial and product development activities, regulatory approval
requirements, the availability and allocation of resources among
different potential uses, estimating the commercial potential of
our products and product candidates and growth in revenues and
improvement in costs, market demand for our products, our ability
to supply or meet customer demand for our products and our ability
to draw down on the second tranche of the SVB term loan or the full
amount of the SVB revolving line of credit. These and other
significant factors are discussed in greater detail in Vericel’s
Annual Report on Form 10-K for the year ended December 31, 2014,
filed with the Securities and Exchange Commission ("SEC") on March
25, 2015, Quarterly Reports on Form 10-Q and other filings with the
SEC. These forward-looking statements reflect management's current
views and Vericel does not undertake to update any of these
forward-looking statements to reflect a change in its views or
events or circumstances that occur after the date of this release
except as required by law.
CONTACT:
Chad Rubin
The Trout Group
crubin@troutgroup.com
(646) 378-2947
or
Lee Stern
The Trout Group
lstern@troutgroup.com
(646) 378-2922
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