The 1st tranche of $10.5 million from the credit facility was drawn on December 30 last year to repay $10 million principal amount of short-term senior secured promissory notes, plus interest, fees and expenses, the company said. A 2nd tranche was made available as of January 1st 2016.
The obligations under the new facility are secured by a lien on all of Strata’s assets, and in connection with the repayment of short-term notes, the company also repurchased debt from its 2014 financing of $118,000, according to an SEC filing.
Upon entering the new facility, Strata issued warrants to lenders to purchase 650,442 shares of common stock at $1.13 per share, exercisable for 5 years.
When Strata draws down the 2nd tranch of $1.5 million, another warrant or warrants will be issues for an aggregate number of shares equal to 7% of 1.5 million divided by the exercise price.
In December, the company shucked off its old Mela Sciences name to take up the new Strata Skin Sciences moniker, effective today. The shift was made to reflect the company’s focus on dermatology and a broad range of conditions, according to CEO Michael Stewart.