EBR SYSTEMS, INC. EBR Systems, Inc. announced that it has entered into an agreement for a growth capital facility with new lender Runway Growth Finance Corp., a fund managed by Runway Growth Capital LLC for gross proceeds of $50,000,000 on June 30, 2022. The capital facility will carry an interest rate based on PRIME plus 4.9% having floor rate of 8.9%, 4.50% ETP (end-of-term-payments). The company issued Senior Secured Term Loans maturing on June 15, 2027.
The company will pay a success fee of 3% of principal funded to the lender if there is a liquidity event in respect of EBR (which includes a merger or sale of EBR), and other customary fees apply (e.g., for early prepayment). The company will receive the second tranche of up to $20,000,000 available through 30 June 2023, with a minimum draw of $15,000,000 contingent on positive data from the pivotal SOLVE trial (sufficient to proceed with PMA submission to FDA). The company will receive the third tranche of up to $20,000,000 available through 30 June 2024, with a minimum draw of $10,000,000 (and subject to overall $50,000,000 maximum facility size) contingent on FDA approval.
The investment in the company is exempt from registration under the Securities Act of 1933, as amended (the “Securities Actâ€) and, therefore, except as otherwise noted, are subject to limitation on resale, may be deemed to be “restricted securities†under the Securities Act.
