Deal sells variable-rate debt with warrants for 168,351 common shares
By Devika Patel
Knoxville, Tenn., Oct. 24 - InspireMD, Inc. said it settled a $10 million venture debt financing with Hercules Technology Growth Capital.
The debt bears interest at a calculated Prime-based variable rate currently set at 10.5%. The debt matures one Feb. 1, 2017.
Hercules also received warrants for 168,351 shares, which are each exercisable at $2.97. The strike price is a 7.48% discount to the Oct. 23 closing share price of $3.21.
Proceeds will be used for clinical research and product development.
"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," president and chief executive officer Alan Milinazzo said in a press release. "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 is a Tel Aviv medical device company developing its proprietary stent system technology, MGuard.
| Issuer: | InspireMD, Inc.
|
| Issue: | Venture debt
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| Amount: | $10 million
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| Maturity: | Feb. 1, 2017
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| Coupon: | Variable
|
| Conversion price: | $0.25
|
| Warrants: | For 168,351 shares
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| Warrant strike price: | $2.97
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| Investor: | Hercules Technology Growth Capital
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| Settlement date: | Oct. 24
|
| Stock symbol: | NYSE: NSPR
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| Stock price: | $3.21 at close Oct. 23
|
| Market capitalization: | $115.61 million
|
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