Investor Kreos Capital also gets warrants for 119,295 ordinary shares
By Devika Patel
Knoxville, Tenn., Jan. 4 – ReWalk Robotics Ltd. negotiated a $20 million line of credit with Kreos Capital V (Expert Fund) Ltd. on Dec. 30, according to an 8-K filed Monday with the Securities and Exchange Commission. The company drew an initial $12 million on the line of credit on Jan. 4.
The company may draw down an additional $8 million in separate tranches until Dec. 31, 2016, with a required drawdown of at least $2 million per tranche.
The 10.75% loans mature in two years.
Kreos also received warrants for 119,295 ordinary shares. The warrants are each exercisable at $9.64, a 38.13% discount to the Dec. 29 closing share price of $15.58.
Proceeds will be used for working capital and market expansion.
“This debt financing agreement provides added funding to support our growth and strategic initiatives,” chief executive officer Larry Jasinski said in a press release. “We remain focused on increasing sales and market penetration and are encouraged by the growing market acceptance of the ReWalk Personal and Rehabilitation systems by end users and coverage providers alike.
“We expect to use this increased financial flexibility to advance our strategic market development and reimbursement activities to build long-term shareholder value.”
The medical device company is based in Yokneam Ilit, Israel.
| Issuer: | ReWalk Robotics Ltd.
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| Issue: | Line of credit
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| Amount: | $20 million
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| Maturity: | Two years
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| Coupon: | 10.75%
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| Warrants: | For 119,295 ordinary shares
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| Warrant expiration: | Sept. 5, 2019
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| Warrant strike price: | $9.64
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| Investor: | Kreos Capital V (Expert Fund) Ltd.
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| Pricing date: | Dec. 30
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| Settlement date: | Jan. 4 (for $12 million)
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| Stock symbol: | Nasdaq: RWLK
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| Stock price: | $15.58 at close Dec. 29
|
| Market capitalization: | $178.04 million
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