Sight Sciences, Inc. announced that it has entered into a senior secured term loan facility for aggregate principal amount of up to $65 million on January 22, 2024. The transaction will include participation from new lender Hercules Capital, Inc and its certain affiliates. .

The term Loan facility will accrue interest at a floating annual rate based on the greater of (i) 10.35% or (ii) the Wall Street Journal prime rate plus 2.35%. Accrued interest on the term loan is payable monthly in arrears. Upon an event of default under the loan agreement, the interest rate will automatically increase by an additional 3.0% per annum.

The term loan facility has a maturity date of July 1, 2028. Upon repayment of the term loans, the company is required to pay an exit fee equal to 5.95% of the originally funded term loans. The term loan facility includes a 0.75% facility charge on the Tranche I Commitment due at Closing Date.

The Term Loan Facility includes additional tranches available as follows: $5.0 million available in a single draw through December 15, 2024, $10.0 million available to draw between the period commencing on the date that the lender, receives evidence in form and substance reasonably satisfactory to it that the company has achieved certain performance milestones, and ending on September 15, 2025, and $15.0 million available for the company to draw through the interest only period, which is an initial period of 30 months from the closing Date which may be extended to 36 months based on achieving certain performance milestones, in increments of $5.0 million, subject to the sole approval of lender?s investment committee. The company will issue a warrant to the lender to purchase that number of shares of the Company?s common stock equal to two percent of Initial Loan, or $700,000, divided by the volume-weighted average price (?VWAP?) of the Company?s common stock for the five-day period preceding the Closing Date. The Company will issue additional common stock warrants to Lender at the closing of future Tranche Loans, if any, to purchase that number of shares of common stock equal to two percent of the applicable Tranche Loan divided by the VWAP of the Company?s common stock for the five-day period preceding the applicable Tranche Loan closing date.

Each warrant shall be exercisable for seven years from date of issuance and shall be tradeable in accordance with the provisions of Rule 144 of the Securities Act of 1933, as amended. As on the same date, the company received its first tranche for $35 million