The term loan further bolsters the Company’s balance sheet and will be used to help finance the recently launched US commercialization of the Pure-Vu System and for general corporate purposes
Image: Motus GI secures loan from Silicon Valley Bank. Photo: Courtesy of 3D Animation Production Company/Pixabay
Motus GI Holdings, a medical technology company providing endoscopy solutions that improve clinical outcomes and enhance the cost-efficiency associated with the diagnosis and management of gastrointestinal conditions, today announced that it has entered into a $8.0 million secured term loan with Silicon Valley Bank (SVB), the bank of the world’s most innovative companies and their investors. The term loan further bolsters the Company’s balance sheet and will be used to help finance the recently launched U.S. commercialization of the Pure-Vu System and for general corporate purposes.
“Securing this non-dilutive term loan with SVB is the beginning of an important new financing relationship with a well-respected bank with whom we can partner as the Company continues to grow. This infusion of low-cost capital provides Motus GI with additional resources to support the commercialization of the Pure-Vu System, which launched sales to U.S. hospitals this fall,” commented Tim Moran, Chief Executive Officer of Motus GI. “The U.S. hospital inpatient colonoscopy market is substantial, comprised of approximately 1.5 million annual procedures, many of which can be delayed or cancelled due to insufficient bowel prep. We believe the Pure-Vu System can reduce the costs associated with critical procedures that are often delayed or repeated and lead to extended, resource-intensive hospital stays.”
“Motus GI has developed a unique and innovative solution that provides both clinical and economic benefits to hospitals when performing inpatient colonoscopies. We are pleased to partner with the leadership team at Motus GI and provide this debt facility to help support bringing the Pure-Vu System to patients, gastroenterologists and hospitals across the U.S.,” said Clark Hayes, Head of Northeast Business Development and Southeast Life Science team, Scott McCarty, Director and Laura Scott, Market Manager at Silicon Valley Bank.
The term loan was funded on December 13, 2019. The term loan requires monthly interest-only payments through December 31, 2021, followed by monthly payments of principal and interest until December 1, 2023. Interest on the term loan accrues at a floating per annum rate of the greater of (i) the Wall Street Journal prime rate plus 0.5% or (ii) 5.5%. Other material terms related to the term loan can be found in the Company’s 8K, which will be filed with the Securities and Exchange Commission.
Source: Company Press Release