Conformis has secured up to $30 million in debt financing from Innovatus Capital Partners and East West Bank and $3 million in equity financing from Innovatus.
This financing is part of Conformis’ comprehensive financing strategy to optimize its capital structure and to provide the funding for driving its commercialization. Conformis will use the proceeds from the debt financing to payoff the $15 million term loan from Oxford Finance and currently expects that the remainder will be used for general corporate purposes, including but not limited to funding its working capital needs.
The loans have a term of five years and are comprised of two parts:
- Term loan with Innovatus of $20 million with an interest-only period of four years
- Revolver line of credit with East West Bank for up to $10 million based on the accounts receivable borrowing base
In addition, Innovatus purchased $3 million of the company’s common stock from the Company at the previous day’s closing price.
“We are pleased to have the confidence and support of Innovatus and East West Bank, who have significant expertise in healthcare and a strong presence in the life science space,” said Paul Weiner, Conformis’ CFO. “This financing provides the funding in a capital-efficient manner to further develop our commercialization strategy and strengthens our ability to bring the benefits of patient specific implants to orthopedic surgeons and the patients they serve.”
Armentum Partners acted as financial advisor to Conformis on this transaction.
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Conformis is a medical technology company that uses its proprietary iFit Image-to-Implant technology platform to develop, manufacture and sell joint replacement implants that are individually sized and shaped, or customized, to fit each patient’s unique anatomy.