Epica International, a global company in advanced medical imaging and precision robotics, closed an $18 million growth capital credit facility with Avenue Venture Opportunities Fund and Avenue Venture Opportunities Fund II, which are funds of Avenue Capital. The initial funding of $13.5 million will be used to refinance existing debt, support strategic expansion and accelerate research and development initiatives. An additional $4.5 million is available in tranches upon the achievement of specific performance milestones.
“This financing marks a significant milestone for Epica,” Joe Soto, CEO of Epica International, said. “The capital infusion from Avenue Capital will empower us to strengthen our financial foundation, expand our market presence and accelerate the development of groundbreaking technologies that will shape the future of medical imaging and robotics. We are thrilled to partner with Avenue Capital, a firm with a proven track record of supporting innovative companies.”
The growth capital loan has a four-year term and includes provisions for Avenue Capital to receive a 0.5% equity stake in Epica International, with an option to invest an additional $2 million in equity within two years. The lender also has the right to convert up to $3.5 million of their principal into common stock at a price of $8.50 per share.
“We are excited to partner with Epica International and support their mission to revolutionize medical imaging and robotics,” Chad Norman, senior portfolio manager at Avenue Capital, said. “Epica’s proprietary technology platforms and intellectual property portfolio position them for continued success in a rapidly growing market. We look forward to a long and fruitful partnership.”
Sheppard Mullin, DLA Piper and Facilitated Growth served as advisors on the transaction.
