Deal includes warrant for $47,578 of stock; proceeds for refinancing
By Marisa Wong
Madison, Wis., Dec. 18 – Response Biomedical Corp. entered into an agreement on Dec. 15 with Silicon Valley Bank for a $1,359,375 term loan facility, according to an 8-K filing with the Securities and Exchange Commission.
The term loan was completed as an amendment to Response’s loan agreement with Silicon Valley Bank dated Feb. 13, 2014. Proceeds will be used to refinance all of Response’s existing debt to Silicon Valley Bank as of the amendment effective date.
The refinanced loan matures on May 1, 2017.
The loan bears interest at the Prime rate plus 250 basis points.
In connection with the term loan, Response issued the bank a warrant to purchase an amount of common shares equal to 3.5% of the loan, or $47,578. The warrant is exercisable at a price of C$1.00 until Dec. 15, 2024.
The strike price is a 26.58% premium to the Dec. 12 closing share price of C$0.79.
Based in Vancouver, B.C., Response develops diagnostic tests for clinical and environmental applications.
Issuer: | Response Biomedical Corp.
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Issue: | Term loan
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Amount: | $1,359,375
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Maturity: | May 1, 2017
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Interest: | Prime rate plus 250 bps
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Warrants: | To purchase $47,578 of common stock
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Warrant expiration: | Dec. 15, 2024
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Warrant strike price: | C$1.00
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Investor: | Silicon Valley Bank
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Settlement date: | Dec. 15
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Stock symbol: | Toronto: RBM
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Stock price: | C$0.79 at close Dec. 12
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Market capitalization: | C$7.95 million
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