Silicon Valley Bank is providing an up to $15 million asset-based revolving line of credit to Kerecis to support the company’s near-term working capital needs. In addition, Kerecis’ leading investors and other lenders provided the company with $6 million in loans that largely consist of convertible notes. The funding will be used to support the company’s expansion plans in the U.S. Kerecis closed a $16 million Series C equity financing in April 2019.
Kerecis develops products from fish skin and fatty acids that protect and regenerate human wounds and heal damaged tissue. Because there is no risk of a viral disease transfer from Atlantic cod to humans, the fish skin needs only mild processing for medical use and maintains its natural structure and elements, including Omega 3 fatty acids.
The Silicon Valley Bank facility is an asset-based revolving line of credit for up to three years, providing working capital for Kerecis’ expanding U.S. operations. The bank also is providing treasury management and other services.
“Overall, this funding will allow us to accelerate development and marketing of our products for wounds, burns and other medical needs, especially in the United States,” G. Fertram Sigurjonsson, founder and CEO of Kerecis, said. “It is fantastic that both Silicon Valley Bank and our investors have expressed their confidence in our overall strategic plan and potential.”
“Silicon Valley Bank is excited to be working with Kerecis to help them bring their innovative medical products to the U.S.,” Julie Betts, managing director at Silicon Valley Bank, said. “The company has shown great traction already, demonstrating that they’re bringing a compelling new product to the market.”