$20 Million Debt Facility With Hercules
Technology Growth Capital
$6 Million Private Placement of Senior
Convertible Notes to Magna
Amedica Corporation (Nasdaq:AMDA) a biomaterial company focused on
using its Silicon Nitride technology platform to develop,
manufacture and sell a broad range of medical devices, today
announced that it has secured up to $26.0 million in additional
funding consisting of a $20.0 million debt financing with Hercules
Technology Growth Capital, Inc. (NYSE:HTGC), and a private
placement to MG Partners II Ltd., an affiliate of Magna ("Magna"),
of 6% Senior Convertible Notes in an aggregate principal amount of
up to $6 million.
Approximately $15.2 million of the proceeds from the financing
will be used to retire Amedica's senior secured credit facility
with General Electric Capital Corporation and the balance will be
used to further the commercialization and development of Amedica's
Silicon Nitride spinal fusion products and its product candidates
for use in total hip and knee joint replacements, and for general
corporate purposes.
Jay Moyes, Chief Financial Officer for Amedica indicated that,
"the repayment of the GE Credit Facility will eliminate
approximately $3.6 million of remaining scheduled principal
payments in 2014, which would have otherwise been due under the GE
Credit Facility. This will enable the company to now expend those
resources on the commercialization of its products."
"This is a significant milestone for the company," stated Eric
Olson, President and Chief Executive Officer of Amedica.
"Refinancing the GE Credit Facility and securing the additional
working capital now puts us in a stronger financial position to
further our company objectives. We are pleased to have the support
of such reputable financial institutions as Hercules Technology
Growth Capital and Magna in maximizing the potential of our silicon
nitride biomaterial."
Hercules Loan Agreement
General terms of the Hercules loan agreement include
interest-only payments for 12 months until July 1, 2015, with the
possibility of extending the interest-only period to eighteen
months. Following the interest-only period, Amedica will repay the
loan in equal monthly payments of principal and interest through
the scheduled maturity date on January 1, 2018. The loan is secured
by a perfected first position lien on all of Amedica's assets,
including intellectual property. In addition, the Company has
issued Hercules a warrant to purchase up to 516,129 shares of
Common Stock at an exercise price of $4.65 per share. Further
information with respect to the loan arrangement with Hercules, is
contained in a Current Report on Form 8-K to be filed on July 1,
2014 by Amedica with the Securities and Exchange Commission.
Magna Convertible Debt Placement
General terms of the convertible debt placement to Magna include
the purchase of an initial Note with a principal amount of $2.9
million, for a purchase price of $2.5 million. $400,000 in
principal plus interest accrued on the initial Note will be
automatically extinguished upon the filing and effectiveness of a
resale registration statement within certain specified timelines.
Additionally, conditioned upon the effectiveness of the resale
registration statement, Magna has agreed to purchase an additional
Senior Convertible Note with a principal amount of $3.5 million.
The Notes are convertible into shares of the Company's common stock
at any time at an initial conversion price of $3.75. In addition,
the Company has issued Magna a warrant to purchase up to 568,889
shares of Common Stock at an exercise price of $4.65 per
share. Further information with respect to the convertible
debt placement to Magna is contained in a Current Report on Form
8-K to be filed on July 1, 2014 by Amedica with the Securities and
Exchange Commission.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any jurisdiction where such
offer, solicitation or jurisdiction would be unlawful.
About Amedica Corporation
Amedica is a commercial biomaterial company focused on using its
Silicon Nitride technology platform to develop, manufacture and
sell a broad range of medical devices. Amedica markets spinal
fusion products and is developing product candidates for use in
total hip and knee joint replacements. Amedica operates an ISO
13485 certified manufacturing facility and its spine products are
FDA cleared, CE marked, and currently marketed in the U.S. and
select markets in Europe and South America.
About Hercules Technology Growth Capital,
Inc.
Hercules Technology Growth Capital, Inc. (NYSE:HTGC) is the
leading specialty finance company focused on providing senior
secured loans to venture capital-backed companies in
technology-related markets, including technology, biotechnology,
life science, and energy & renewable technology industries, at
all stages of development. Since inception (December 2003),
Hercules has committed more than $4.2 billion to over 270 companies
and is the lender of choice for entrepreneurs and venture capital
firms seeking growth capital financing.
Hercules' common stock trades on the New York Stock Exchange
under the ticker symbol "HTGC."
In addition, Hercules has two outstanding bond issuances of 7.00
percent Senior Notes due 2019—the April 2019 Notes and September
2019 Notes—which trade on the NYSE under the symbols "HTGZ" and
"HTGY," respectively.
About Magna
Magna is a New York based investment firm that creates lasting
relationships with portfolio companies across a range of sectors—
from technology to healthcare to the arts. Magna prioritizes the
open mind, converting unexpected opportunity into mutually
advantageous investments to build long-term, successful
partnerships.
Forward-Looking Statements
This press release contains statements that constitute
forward-looking statements within the meaning of the Securities Act
of 1933 and the Securities Exchange Act of 1934, as amended by the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements contained in this press release include the intent,
belief or current expectations of Amedica and members of its
management team with respect to Amedica's future business
operations, as well as the assumptions upon which such statements
are based. Forward-looking statements include specifically, but are
not limited to, the timing of the closing of the private placement
and the amount of gross proceeds and the use of net proceeds from
the financing and such statements are subject to risks and
uncertainties such as the timing and success of new product
introductions, physician acceptance, endorsement, and use of
Amedica's products, regulatory matters, competitor activities,
changes in and adoption of reimbursement rates, potential product
recalls, and effects of global economic conditions. Additional
factors that could cause actual results to differ materially from
those contemplated within this press release can also be found in
Amedica's Risk Factors disclosure in its Annual Report on Form
10-K, filed with the Securities and Exchange Commission (SEC) on
March 31, 2014, and in Amedica's other filings with the SEC.
Amedica disclaims any obligation to update any forward-looking
statements.
CONTACT: Amedica Investor Relations:
Gordon Esplin
VP, Finance
(801) 839-3516
gesplin@amedica.com
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