BG Medicine Secures $15 Million Facility From GE Capital, Comerica
BG Medicine, Inc., a company focused on the development and commercialization of novel, biomarker-based diagnostics, announced that it has entered into a $15 million secured loan facility with GE Capital, Healthcare Financial Services and Comerica Bank. An initial term loan in the aggregate principal amount of $10 million was funded to the company on February 10, 2012. Subject to BG Medicine’s successful achievement of certain revenue milestones and other customary conditions, the company may draw an additional $5 million term loan on or before February 10, 2013.
“We believe this loan facility provides BG Medicine with financial flexibility to assist us in our development and commercialization activities for the automated versions of our BGM Galectin-3 test for heart failure in the United States and worldwide, the potential commercialization of our CardioSCORE diagnostic test to identify patients at near-term risk of heart attack and stroke, and the development of additional indications for our BGM Galectin-3(TM) test,” said Eric Bouvier, president and CEO of BG Medicine.
“In evaluating several financing options relative to our business needs, we concluded that this loan facility was well-suited to provide the capital necessary to further our product development and commercialization plans while minimizing dilution to our current shareholders,” said Michael W. Rogers, executive vice president and CFO of BG Medicine. “With the $10 million in proceeds from the initial loan and our cash and cash equivalents of approximately $24 million at December 31, 2011, this financing extends our cash runway to advance our operating plans.”
The initial term loan accrues interest at a rate of 8% plus the higher of (a) the 3-month LIBOR rate or (b) 1.25% per annum, and has a term of 42 months. Additionally, no principal repayment is due for the first 12 months of the term. In connection with funding of the $10 million initial term loan, BG Medicine issued warrants to purchase 36,657 shares of its common stock with an exercise price of $6.82 per share. If BG Medicine draws the additional $5 million term loan, it will be obligated to issue additional warrants to the lenders, consistent with the warrant formula applicable to the initial term loan.
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