CytoSorbents Corporation, a leader in critical care immunotherapy specializing in blood purification, announced that it received an additional $5 million from the Life Sciences Group of Bridge Bank, a division of Western Alliance Bank.
In June 2016, CytoSorbents Corporation and its U.S. operating subsidiary, CytoSorbents Medical, Inc. entered into a Loan and Security Agreement with Western Alliance Bank, securing an initial $5 million 4-year term loan that was funded on June 30, 2016. On June 30, 2017, the Company elected to drawdown the additional $5 million of funding available under the Loan and Security Agreement, bringing its total borrowings under the facility to $10 million. As a result of this additional drawdown, the period of interest-only payments on both term loans is extended by six months through December 31, 2017, followed by 30 months of straight line amortization through the July 1, 2020 maturity date. The Company intends to use the proceeds from the loan to provide working capital to fund ongoing operations and to support clinical trials.
"With our existing cash on hand, this non-dilutive financing further strengthens our balance sheet at an attractive cost of capital and provides sufficient working capital for the foreseeable future, allowing us to continue to pursue our aggressive growth strategy and clinical trial objectives as we increase product sales worldwide and move closer to operating cash flow breakeven," stated Ms. Kathleen P. Bloch, CPA, MBA, Chief Financial Officer of CytoSorbents Corporation. "We welcome this continuation and expansion of our important relationship with Bridge Bank, a reputable and premier industry provider with a broad scope of financial services."
"We have been working with CytoSorbents for over a year now and have been pleased with their performance and progress over that time. We believe they possess a truly innovative technology in the life sciences space which could transform critical care medicine and cardiac surgery and save lives throughout the world," said Mr. Justin McDonie, Senior Vice President and Managing Director for Bridge Bank. "We are pleased to provide this additional capital to support CytoSorbents' growth at this important juncture in their evolution."