Myomo, a wearable medical robotics company that offers increased functionality for those suffering from neurological disorders and upper limb paralysis, entered into a term loan agreement with Chicago Venture Partners (CVP) for $3 million.
Myomo expects to use the proceeds to continue to grow the company’s pipeline of qualified MyoPro candidates, introduce the new pediatric version of its MyoPro orthosis, and for general corporate purposes.
Paul R. Gudonis, Myomo chairman and CEO, stated, “We expect to achieve several important milestones over the next three to six months and this additional capital enables us to continue to conduct the activities which can bring these catalysts to fruition. With our online marketing programs, we are identifying significant numbers of patients who are interested in a MyoPro orthosis for their paralyzed arms and are expanding the percentage of our pipeline that we directly bill to payers for reimbursement. We are also planning to introduce our pediatric device later this year, which opens a new patient population for us. In addition, we continue to work with CMS to obtain coverage of the MyoPro for Medicare beneficiaries, and are actively discussing licensing opportunities in Asia.”
Under the term loan agreement, Myomo has borrowed a gross amount of $3.3 million. With an original issue discount, the net proceeds to the company, before fees and expenses, total approximately $3 million. The term loan matures eighteen months following the closing. Starting six months from initial funding, the lender may redeem up to $300,000 per month. The company has granted to the lender a security interest in all of its assets, excluding its intellectual property.
Ascendiant Capital Markets served as the sole placement agent on the transaction.
