In the offering, the company floated $30 million in senior secured and guaranteed notes to investment firm Perceptive Advisors, with notes slated to be issued today and mature on the same day in 2022, the France-based company said.
“We are excited about this investment in Medicrea. This refinancing retires most of the company’s existing debt, and gives the company the financial flexibility to accelerate UNID ASI adoption. The company has a unique service and product offering in the spine market and has delivered superior patient outcomes. With a clean capitalization, simplified balance sheet, and excess cash, Medicrea has a significant opportunity to grow over the coming years,” Perceptive Advisors portfolio manager Sam Chawla said in a press release.
Medicrea said it will use funds from the offering to fund its growth strategy in the US and to support continued product development.
“We are glad to execute this financing with Perceptive Advisors. The new secured notes will give us the necessary capital to continue to fuel our UNiD ASI growth strategy in the United States and will give us the required funds to continue the development of other proprietary products. We look forward to working with Perceptive, one of the leading healthcare focused investment firms in the world. We believe this refinancing is another validation of our proprietary, patient specific technology focused on restoring sagittal and coronal alignment,” CEO & board chair Denys Sournac said in a prepared statement.
The company added that it retired its approximately $17 million (EU €15 million) convertible debt with Athyrium Capital Management, and plans to use proceeds to pay down portions of other secured outstanding debt for a total amount of approximately $1.8 million (EU €1.6 million). Medicrea said that it believes the refinancing will support it until it achieves operational profitability.
In August, Medicrea said that it listed on the OTC exchange and began trading on the OTCQX Best Market under the tickers “MRNTY” and “MRNTF”.