Aziyo Biologics, a biologics company with a portfolio of regenerative products aimed at improving compatibility between medical devices and the patients they treat, received an additional $4 million term loan from SWK Holdings, a healthcare-focused investment firm.
“This funding provides us with additional capital resources to continue development of CanGaroo RM, our next-generation biomaterial envelope enhanced with antibiotics, which we believe is on track for an FDA 510(k) marketing clearance in the first quarter of next year,” Matt Ferguson, CFO of Aziyo, said. “Our strategy remains focused on continued growth of our device compatibility business units, which represents a significant market opportunity.”
“We are excited to see Aziyo build on its growth momentum and create new innovative solutions for patients, specifically with the future launch of CanGaroo RM,” Jody Staggs, president of SWK Holdings, said. “We believe Aziyo is well-positioned to execute on its key strategic initiatives as it continues providing novel therapeutic options to patients in need.”
The additional $4 million term loan is the second tranche under an existing aggregate $25 million credit facility. The initial $21 million term loan under the facility was funded in August 2022. The additional debt financing follows Aziyo’s recently closed $11.2 million public offering of common stock in December 2022, resulting in a combined aggregate amount of $15.2 million in gross proceeds from these two financings. The company plans to use the proceeds to expand its product development and clinical research activities, hire additional sales personnel to coincide with product launches and to fund working capital and other general corporate purposes.
