ViewRay said today that it reeled in a debt round worth $50 million from CRG for its MRIdian MRI-guided radiation therapy device, a few months after scrapping an initial public offering that would have fetched $52 million at the midpoint.
The debt funding, from healthcare investment firm CRG, consists of an initial $30 million, 3-year, interest-only debt facility and another $20 million ViewRay can draw on once it meets unspecified milestones, the Cleveland-based company said.
In April ViewRay scrapped its planned IPO, after setting a range of $12 to $14 apiece for the 4-million-share flotation. The company had planned to trade under the “VRAY” symbol on the NASDAQ exchange.
The 1st $30 million is slated for the commercialization of the MRIdian device and to pay down $13 million in other debt.
“We are pleased to have the confidence and support of CRG, an investment partner renowned for its strategic investments in healthcare,” president & CEO Chris Raanes said in prepared remarks. “This loan facility provides the funding to support the next stage of commercialization and marks an important step in bringing the benefits of simultaneous MRI guidance and on-table adaptive treatments to radiation oncology professionals and the patients they serve.”
“We believe that MRI guidance is the future of treating cancer with radiation, and we are pleased to support ViewRay as the technology leader,” added CRG chairman Charles Tate. “The demonstrated clinical value of the MRIdian System at leading U.S. cancer centers gives us the confidence to invest in ViewRay’s business model.”