Term Loans Support Commercialization in Europe and U.S. Regulatory
Clearance and Market Development
RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--
TransEnterix, Inc. (NYSE MKT:TRXC) (the "Company"), a medical device
company that is pioneering the use of robotics to improve minimally
invasive surgery, today announced that it has entered into a debt
financing agreement with an affiliate of Innovatus Capital Partners, LLC
("Innovatus") to provide the Company with up to $17.0 million in term
"We are pleased to partner with Innovatus for our debt financing needs,"
said Todd M. Pope, President and Chief Executive Officer of
TransEnterix. "In conjunction with our recently completed equity
transaction, this capital will allow us to continue our
commercialization efforts in Europe, focus on the Senhance 510(k)
clearance process and expand our U.S. market development efforts.
Innovatus has proven to be a flexible and committed capital provider at
this critical stage of growth."
On May 10, 2017, the Company entered into a loan and security agreement
(the "Loan Agreement") with Innovatus pursuant to which Innovatus has
agreed to make certain term loans in the aggregate principal amount of
up to $17.0 million, with the funding of the first $14.0 million tranche
expected to occur upon satisfaction of customary funding conditions. The
Company will be eligible to draw on the second tranche of $3,000,000
upon achievement of certain milestones, including clearance for
commercialization of Senhance by the U.S. Food and Drug Administration
("Senhance Clearance"). The Company is entitled to make interest-only
payments for twenty-four months so long as it meets certain milestones,
including Senhance Clearance by May 30, 2018. The loans will mature on
the earlier of (i) the fourth anniversary of the initial funding date
and (ii) twenty-four (24) months following the failure to achieve such
interest-only milestones. The Loan Agreement includes customary warrant
coverage and is secured by all of the Company's, and its domestic and
material foreign subsidiaries', assets. The Company fully repaid its
term loans with Silicon Valley Bank and Oxford Finance LLC on May 10,
2017. Proceeds will be used for general corporate and working capital
"Innovatus is excited about the participation of TransEnterix in the
future use of robotics in the medical field with the Senhance Surgical
Robotic System," said Andrew Dym, co-founder and President of Innovatus.
"Providing capital to such a pioneering and innovative company is a
strategic priority for Innovatus and we look forward to continuing our
relationship for years to come."
Additional details regarding the Company's financing are included in the
Company's Current Report on Form 8-K which is expected to be filed on or
about May 10, 2017 with the Securities and Exchange Commission.
TransEnterix is a medical device company that is pioneering the use of
robotics to improve minimally invasive surgery by addressing the
clinical and economic challenges associated with current laparoscopic
and robotic options. The company is focused on the commercialization of
the Senhance Surgical Robotic System, a multi-port robotic system that
brings the advantages of robotic surgery to patients while enabling
surgeons with innovative technology such as haptic feedback and eye
sensing camera control. The company also developed the SurgiBot™ System,
a single-port, robotically enhanced laparoscopic surgical platform. The
Senhance Surgical Robotic System has been granted a CE Mark but is not
currently available for sale in the United States. For more information,
visit the TransEnterix website at www.transenterix.com.
About Innovatus Capital Partners
Innovatus Capital Partners, LLC, is an independent adviser and portfolio
management firm with ~$1.7 billion in assets under management. The firm
adheres to an investment strategy that identifies distressed, disruptive
and growth opportunities in the less obvious market segments across
multiple asset categories with a unifying theme of capital preservation,
income generation, and upside optionality. Further information can be
found at innovatuscp.com.
This press release includes statements relating to the Senhance™
Surgical Robotic System and our current regulatory and commercialization
plans for this product. These statements and other statements regarding
our future plans and goals constitute "forward looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, and are intended to
qualify for the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. Such statements are subject to
risks and uncertainties that are often difficult to predict, are beyond
our control and which may cause results to differ materially from
expectations and include whether the capital will allow us to continue
our commercialization efforts in Europe, focus on the Senhance 510(k)
clearance process and expand our U.S. market development efforts.. For a
discussion of the risks and uncertainties associated with TransEnterix's
business, please review our filings with the Securities and Exchange
Commission (SEC), including our Annual Report on Form 10-K filed on
March 6, 2017 and our other filings we make with the SEC. You are
cautioned not to place undue reliance on these forward looking
statements, which are based on our expectations as of the date of this
press release and speak only as of the origination date of this press
release. We undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170510006447/en/
For TransEnterix, Inc.
(For EU) Conrad Harrington, +44 (0)20 3178 8914
US) Hannah Dunning, +1-415-618-8750
Source: TransEnterix, Inc.
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