Conformis, Inc. (NASDAQ:CFMS), a medical technology company that
uses its proprietary iFit Image-to-Implant technology platform to
develop, manufacture and sell patient specific joint replacement
implants designed to fit each patient's unique anatomy, announced
today that the Company has secured up to $30 million in debt
financing from Innovatus Capital Partners, LLC (“Innovatus”) and
East West Bank and $3 million in equity financing from Innovatus.
This financing is part of Conformis’ comprehensive financing
strategy to optimize its capital structure and to provide the
funding for driving its commercialization. Conformis will use the
proceeds from the debt financing to payoff the $15 million term
loan from Oxford Finance LLC and currently expects that the
remainder will be used for general corporate purposes, including
but not limited to funding its working capital needs.
The loans have a term of five years and are comprised of two
parts:
- Term loan with Innovatus of $20 million with an interest-only
period of four years
- Revolver line of credit with East West Bank for up to $10
million based on the accounts receivable borrowing base
In addition, Innovatus purchased $3 million of the Company’s
common stock from the Company at the previous day’s closing
price.
“Conformis’ proprietary iFit Image-to-Implant technology for
patient specific joint replacement implants has the potential to
disrupt an $18 billion orthopedics industry by solving for the
shortcomings of conventional ‘off-the-shelf’ total knee replacement
procedures, where 1 in 5 patients are not satisfied with the
results,” commented Claes Ekstrom, Managing Director at Innovatus.
“We are excited to support Conformis’ ongoing mission to achieve
better patient outcomes and lower healthcare costs.”
“We are pleased to have the confidence and support of Innovatus
and East West Bank, who have significant expertise in healthcare
and a strong presence in the life science space,” said Paul Weiner,
Conformis’ Chief Financial Officer. “This financing provides the
funding in a capital-efficient manner to further develop our
commercialization strategy and strengthens our ability to bring the
benefits of patient specific implants to orthopedic surgeons and
the patients they serve.”
The securities to be sold in the private placement have not been
registered under the Securities Act of 1933, as amended, or
applicable state securities laws, and accordingly may not be
offered or sold in the United States except pursuant to an
effective registration statement or an applicable exemption from
the registration requirements of the Securities Act and such
applicable state securities laws.
This release does not constitute an offer to sell or the
solicitation of an offer to buy the securities, nor shall there be
any sale of the securities in any state in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of such state.
Armentum Partners acted as financial advisor to
Conformis on this transaction. Additional detail regarding the
foregoing financing is set forth in the Company’s Current Report on
Form 8-K, filed today with the SEC.
About Conformis, Inc.
Conformis is a medical technology company that uses its
proprietary iFit Image-to-Implant technology platform to develop,
manufacture and sell joint replacement implants that are
individually sized and shaped, or customized, to fit each patient's
unique anatomy. Conformis offers a broad line of customized
knee and hip implants and customized pre-sterilized, single-use
instruments delivered to the hospital. In clinical studies,
Conformis iTotal CR knee replacement system demonstrated superior
clinical outcomes, including better function and greater patient
satisfaction, compared to traditional, off-the-shelf implants.
Conformis owns or exclusively in-licenses issued patents and
pending patent applications that cover customized implants and
customized patient-specific instrumentation for all major
joints.
For more information, visit www.conformis.com. To receive
future releases in e-mail alerts, sign up at ir.conformis.com.
About Innovatus Capital Partners, LLC
Innovatus Capital Partners, LLC, is an independent adviser and
portfolio management firm with approximately $1.7B in assets under
management. Innovatus adheres to an investment strategy that
identifies disruptive and growth opportunities across multiple
asset categories with a unifying theme of capital preservation,
income generation, and upside optionality. The firm has a dedicated
team of life sciences investment professionals with deep experience
in healthcare, including life sciences. Innovatus and its
principals have significant experience providing debt financing to
medical device, diagnostics, and biotechnology companies that
address unmet medical needs, improve patient outcomes, and reduce
overall healthcare expenditures. Further information can be found
at innovatuscp.com.
About East West Bank
East West Bank (NASDAQ: EWBC) is the largest independent bank
headquartered in Southern California and among the 30 largest banks
in the United States with total assets of over $40 billion.
As the premier financial bridge between East and West, the
bank focuses exclusively on the United States and Greater China
markets and operates over 130 locations worldwide. Forbes has
named East West Bank among the top 15 of “America's 100 Best
Banks.” For more information on East West Bank, visit the
Company's website at www.eastwestbank.com.
Cautionary Statement Regarding Forward-Looking
Statements
Statements in this press release about our future expectations,
plans and prospects, including statements about the anticipated
timing of our product launches and the expected closing of the
private placement, the anticipated use of proceeds, and our
financial position and results, total revenue, product revenue,
gross margin, operations, as well as other statements containing
the words "anticipate," "believe," "continue," "could," "estimate,"
"expect," "intend," "may," "might," "plan," "potential," "predict,"
"project," "should," "target," "will," or "would" and similar
expressions, constitute forward-looking statements within the
meaning of the safe harbor provisions of The Private Securities
Litigation Reform Act of 1995. We may not actually achieve the
forecasts disclosed in our forward-looking statements, and you
should not place undue reliance on our forward-looking statements.
Actual financial results could differ materially from the
projections disclosed in the forward-looking statements we make as
a result of a variety of risks and uncertainties, including risks
related to whether the conditions for the closing of the private
placement will be satisfied, risks related to our estimates and
expectations regarding our revenue, gross margin, expenses, revenue
growth and other results of operations, and the other risks and
uncertainties described in the "Risk Factors" sections of our
public filings with the Securities and Exchange Commission. In
addition, the forward-looking statements included in this press
release represent our views as of the date hereof. We anticipate
that subsequent events and developments may cause our views to
change. However, while we may elect to update these forward-looking
statements at some point in the future, we specifically disclaim
any obligation to do so. These forward-looking statements should
not be relied upon as representing our views as of any date
subsequent to the date hereof.
CONTACT:Investor contactir@conformis.com(781) 374-5598
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