The financing agreement includes senior notes, due in 2028, together with warrants to purchase common stock. WestPark Capital Inc. served as the sole placement agent in the private placement.
Tucson, Arizona-based Picard, the company behind the Syncardia Total Artificial Heart (TAH), expects to issue an initial $15 million principal amount of notes. The placement then includes an option to fund up to an additional $35 million in one or more tranches. Notes will be senior secured obligations of the company.
Picard intends to use the net proceeds for working capital and general corporate purposes. It’s the latest financial infusion for the company, which completed an IPO to support market expansion earlier this year. The company said then that it planned to continue funding R&D activities, including those related to its next-generation Emperor system. It designed the Emperor as a fully implantable, driverless version of the Syncardia TAH. It provides pulsatile flow without requiring a pneumatic driver.
Other intended uses for the IPO funds, which could also be addressed with the latest funding, included TAH system sales, marketing and distribution capabilities. The company expected funds to go toward the costs of additional inventory and an expanded base of drivers, as well as debt repayment.
