Hercules Secures Additional Amedica Funding
Amedica Corporation announced it has secured up to $26 million in additional funding, including a $20 million debt financing with Hercules Technology Growth Capital.
The funding also includes a private placement to MG Partners II, an affiliate of Magna, of 6% senior convertible notes in an aggregate principal amount of up to $6 million.
Approximately $15.2 million of the proceeds from the financing will be used to retire Amedica’s senior secured credit facility with General Electric Capital, and the balance will be used to further the commercialization and development of Amedica’s Silicon Nitride spinal fusion products and its product candidates for use in total hip and knee joint replacements, and for general corporate purposes.
Jay Moyes, chief financial officer for Amedica, indicated that, the repayment of the GE Credit Facility will eliminate approximately $3.6 million of remaining scheduled principal payments in 2014, which would have otherwise been due under the GE credit facility. This will enable the company to now expend those resources on the commercialization of its products.
“This is a significant milestone for the company,” stated Eric Olson, president and chief executive officer of Amedica. “Refinancing the GE credit facility and securing the additional working capital now puts us in a stronger financial position to further our company objectives. We are pleased to have the support of such reputable financial institutions as Hercules Technology Growth Capital and Magna in maximizing the potential of our silicon nitride biomaterial.”
Amedica is a commercial biomaterial company focused on using its Silicon Nitride technology platform to develop, manufacture and sell a broad range of medical devices.