InspireMD Inc., a leader in embolic protection stents, today announced that it has secured $10 million in venture debt financing to support expanding its ability to execute on emerging clinical research and product development efforts. The company also announced it has adopted a stockholder rights plan effective for a one year period.
Alan Milinazzo, President and Chief Executive Officer of InspireMD, commented, "While we have the necessary capital to support our existing business and clinical efforts, we intend to strategically increase the Company's access to capital to fund the expansion of our clinical studies and product development strategy, while limiting shareholder dilution. Our initial action includes securing $10 million of venture debt. With this added capital, we can accelerate critical product development and clinical programs to expand our MicroNet therapeutic platform as well as facilitating ongoing discussions with potential strategic partners."
InspireMD closed the $10 million venture debt financing with Hercules Technology Growth Capital. The funding is in the form of secured indebtedness bearing interest at a calculated prime-based variable rate currently set at 10.5%. Payments under the loan agreement are interest only for 9 months, followed by 30 monthly payments of principal and interest through the scheduled maturity date on February 1, 2017. In connection with the loan agreement, InspireMD issued Hercules warrants, which are exercisable for 168,351 shares of Common Stock at a per share exercise price of $2.97.
InspireMD seeks to utilize its proprietary MGuard™ technology to make its products the industry standard for embolic protection stents and to provide a superior solution to the key clinical issues of current stenting in patients with a high risk of distal embolization, no reflow and major adverse cardiac events.
Hercules Technology Growth Capital, Inc. is a 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 and renewables technology industries, at all stages of development.