ConforMIS (NSDQ:CFMS) said today that it secured $50 million in debt financing from Oxford Finance LLC and that it has filed a shelf registration statement with the SEC. The debt financing and shelf registration are a part of the Bedford, Mass.-based company’s strategy to fund commercialization of its custom joint replacement implants.
According to the 5-year agreement, ConforMIS can initially access $15 million of debt and an additional $15 million will be made available through December this year. Another $20 million will be available through June 2018 and is pegged to certain revenue milestone.
“We believe that patient-specific joint replacement implants are the future of joint replacements and we are pleased to support ConforMIS as a technology leader,” Oxford Finance’s senior managing director Christopher Herr said in prepared remarks. “The demonstrated clinical benefits of ConforMIS’ knee replacement systems gives us the confidence to support ConforMIS’ business model.”
“We are pleased to have the confidence and support of Oxford Finance, a specialty finance firm that provides senior debt to life sciences and healthcare services companies,” ConformIS’ president & CEO Mark Augusti added. “This loan facility provides the funding to support the next stage of commercialization and strengthens our ability to bring the benefits of patient-specific knee replacements to orthopedic surgeons and the patients they serve.”
The shelf registration statement will enable the company to sell up to $200 million of its common stock, preferred stock, debt securities, or warrants.