Motus GI Holdings, a medical technology company providing endoscopy solutions for the diagnosis and management of gastrointestinal conditions, refinanced its debt and expanded its long-term credit facility by securing a new loan agreement with Kreos Capital VI LP (Kreos Capital) for up to $12 million. The new facility replaces Motus GI Holdings’ previous term loan agreement with Silicon Valley Bank and removes an existing $10 million minimum cash balance liquidity covenant.
The new term loan agreement is split into three tranches, including a $5 million term loan and a $4 million convertible loan that were both funded on July 16, 2021. The third tranche is a $3 million term loan option available to be drawn by the company through Dec. 31, 2021.
“We are pleased to announce this new partnership with Kreos Capital, a leading debt provider for high-growth companies. We believe this transaction reflects the confidence that Kreos has in the company and our ability to execute our strategy,” Tim Moran, CEO of Motus GI Holdings, said. “By increasing the credit line by 50% from $8.0 million to $12.0 million, this new agreement immediately strengthens our balance sheet and extends our cash runway to continue to build the market for the Pure-Vu System.”
“The Pure-Vu system is an innovative product with the potential to substantially improve bowel preparation, and we are excited to partner with Motus GI for the next stage of their growth bringing this system to clinicians across the country,” Chris Church, principal at Kreos Capital, said.
Motus GI Holdings intends to use the proceeds of the credit facility to refinance its existing indebtedness in the amount of approximately $8.2 million, to enhance its product development and commercial growth plans and for general corporate purposes.
