Nexstim, a medical technology company focused on pioneering navigated non-invasive brain stimulation systems for both therapeutic and diagnostic applications, entered into a loan agreement with growth debt financer Kreos Capital. Under the terms of the arrangement, Kreos will grant Nexstim a senior secured term loan facility of €4 million ($4.717 million). Loans drawn down under the agreement will carry interest at the rate of 10.75% per annum.

In addition to interest, Nexstim will be liable for a €40,000 ($471,744) transaction fee and 1.75% of the amounts drawn down under the agreement.

Nexstim and its respective subsidiaries pledged the following assets as security for the amounts payable under the agreement:

  • Nexstim’s bank accounts, promissory notes establishing a business mortgage over Nexstim’s assets, intra-group loan receivables, the Nex 10 and Nex 15 patent families and trademarks as specified in the relevant agreement and the shares in Nexstim’s UK subsidiary Nexstim Ltd and shares in Nexstim’s German subsidiary Nexstim Germany;
  • The shares in Nexstim’s US subsidiary Nexstim, Inc. as well as its assets capable of being pledged; and
  • The bank accounts and receivables of Nexstim’s German subsidiary Nexstim Germany.

The financing arrangement also included issuing warrants over new shares in Nexstim. An agreement governing the issuance of the warrants would be entered into by and between Nexstim and Kreos Capital V. The maximum number of new shares to which the warrants entitle would be 1,739,761.

Nexstim intends to use the proceeds of the arrangement to bring Nexstim NBT® and NBS products to market in both Europe and the United States.

The arrangement is conditional on the approval of the Annual General Meeting, to be held on March 28, 2018.