TransEnterix, Inc. Secures up to $25 Million in Growth Capital from Oxford Finance and Silicon Valley Bank
30 September 2014 - 9:00PM
Business Wire
TransEnterix, Inc. (NYSE MKT: TRXC), a medical device company
that is pioneering the use of robotics and flexible instruments to
improve minimally invasive surgery, today announced that it has
expanded its existing agreement with Oxford Finance LLC and Silicon
Valley Bank to provide for up to $25.0 million in growth
capital.
"We are pleased to have expanded our relationship with Oxford
and Silicon Valley Bank," said Todd M. Pope, President and Chief
Executive Officer of TransEnterix. "We anticipate that this
financing provides us with up to three quarters of additional
capital to satisfy our operating cash requirements.”
On September 26, 2014, the Company entered into an amended and
restated loan and security agreement (Loan Agreement) with Oxford
Finance LLC and Silicon Valley Bank for a total loan amount of up
to $25.0 million. The loan will mature on April 1, 2018, or October
1, 2018, if certain milestones are achieved. The Loan Agreement
provides for up to three separate tranches of $10.0 million, $5.0
million and $10.0 million, respectively. At closing, the Company
increased its existing borrowings of approximately $5.6 million
under the first tranche to the full $10.0 million. The availability
of the second and third advances are dependent upon the Company
achieving specified milestones. The Company is entitled to make
interest only payments for 12 months which period is extended to 18
months based upon the achievement of certain milestones. The Loan
Agreement includes customary warrant coverage and is secured by
Company assets. Proceeds will be used for general corporate and
working capital purposes.
Additional details regarding the financings are included in a
Current Report on Form 8-K filed on September 30, 2014 by
TransEnterix with the Securities and Exchange Commission.
About TransEnterix
TransEnterix is a medical device company that is pioneering the
use of robotics and flexible instruments to improve minimally
invasive surgery. The company is focused on the development and
commercialization of the SurgiBot™ system, a minimally invasive
surgical robotic system that allows the surgeon to be patient-side
within the sterile field. For more information, visit the company's
website at www.transenterix.com.
About Oxford Finance LLC
Oxford Finance is a specialty finance firm providing senior
secured loans to public and private life sciences and healthcare
services companies worldwide. For over 20 years, Oxford has
delivered flexible financing solutions to its clients, enabling
these companies to maximize their equity by leveraging their
assets. In recent years, Oxford has originated over $2 billion in
loans, with lines of credit ranging from $500 thousand to $75
million. Oxford is headquartered in Alexandria, Virginia, with
additional offices in California, Massachusetts, Illinois and North
Carolina. For more information visit www.oxfordfinance.com.
About Silicon Valley Bank
Banking the world's most innovative companies and exclusive
wineries, SVB offers diverse financial services, knowledge, global
networks, and world class service to increase our clients'
probability of success. With more than $33 billion in assets and
more than 1,700 employees, we provide commercial, international and
private banking through our locations around the world. Forbes
Magazine ranks us among America's Best Banks and Fortune named SVB
one of the best places to work. (Nasdaq: SIVB) www.svb.com.
Silicon Valley Bank is the California bank subsidiary and the
commercial banking operation of SVB Financial Group. Banking
services are provided by Silicon Valley Bank, a member of the FDIC
and the Federal Reserve System.
Forward Looking Statements
This press release includes statements relating to the Company’s
capital requirements. These statements and other statements
regarding our future plans and goals constitute "forward looking
statements" within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934, and
are intended to qualify for the safe harbor from liability
established by the Private Securities Litigation Reform Act of
1995. Such statements are subject to risks and uncertainties that
are often difficult to predict, are beyond our control, and which
may cause results to differ materially from expectations and
include whether this financing will provide an additional three
quarters of additional capital to satisfy our operating cash
requirements. Factors that could cause our results to differ
materially from those described include, but are not limited to,
the risks and uncertainties associated with TransEnterix's business
in our filings with the Securities and Exchange Commission (SEC),
including our Annual Report on Form 10-K for the year ended
December 31, 2013 filed on March 5, 2014 as amended, and other
filings we make with the Securities and Exchange Commission. You
are cautioned not to place undue reliance on these forward looking
statements, which are based on our expectations as of the date of
this press release and speak only as of the date of this press
release. We undertake no obligation to publicly update or revise
any forward looking statement, whether as a result of new
information, future events or otherwise.
Westwicke PartnersInvestor Contact:Mark Klausner,
443-213-0501transenterix@westwicke.comorTransEnterix, Inc.Media
Contact:Mohan Nathan, 919-917-6559mnathan@transenterix.com
TransEnterix (AMEX:TRXC)
Historical Stock Chart
From Mar 2024 to May 2024
TransEnterix (AMEX:TRXC)
Historical Stock Chart
From May 2023 to May 2024