The funding from EIB is divided into two tranches of
Given the satisfactory cash situation of
One of the tranches is related to the approval of a new device for treatment of stroke patients that would ensure a major launch in the market. This refers to the Cottis 2 study combining cooling and thrombectomy. The first tranche can also be used to finance a planned clinical study for reimbursement concerning Cooral® System in treating oral mucositis that may affect cancer patients having chemotherapy.
Each of the two tranches has a five-year maturity from the drawdown date and they become available depending on achieved milestones. The interest rate is market based and upon the drawdown of a tranche, the company must, as is customary for EIB- venture debt financing, provide a stock option package consisting of warrants, the terms of which to be negotiated prior to any tranche drawdown. A covenant on solvency is also set in connection with a drawdown of a tranche.
CEO
-” The loan agreement with EIB further validates BrainCool’s cutting-edge technology with the aim to build a major player in the medical device market. It supports our ambitious plan to create an extensive clinical pipeline of game changing therapies first in stroke, followed by sudden cardiac arrest and oncology. We welcome the EIB to our committed group of investors as we continue building a leading European medical device company with the potential to transform the treatment of serious diseases.”
Thomas Östros, Vice-President at EIB, said;
-“Research, development and innovation within the medical sector is of utmost importance. However, many small businesses in
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