ImpediMed secures US$15 million growth capital facility
| Stock | Impedimed Ltd (IPD.ASX) |
|---|---|
| Release Time | 6 Feb 2025, 9:23 a.m. |
| Price Sensitive | Yes |
ImpediMed secures US$15 million growth capital facility
- Wholly owned subsidiary ImpediMed, Inc. secures 5-year US$15 million growth capital facility with SWK Funding LLC
- Funds to support growth and commercialisation activities as ImpediMed executes on its path to profitability
- Facility provides ImpediMed with funding flexibility and preserves value for existing shareholders
ImpediMed Limited (ASX: IPD) has announced that its wholly owned subsidiary, ImpediMed, Inc. has executed an agreement for a 5-year US$15 million growth capital facility with SWK Funding LLC, a specialist finance company with a focus on the global healthcare sector. The funds raised from the facility will be used to support ImpediMed's growth and commercialisation activities as it executes on the opportunity and its path to profitability. The Board of ImpediMed is confident that the company has established a robust foundation for future growth and believes that considered investment to scale the business is essential to fully capitalise on the significant opportunities at hand. The new funding solution provides enhanced balance sheet flexibility while preserving the value of existing shareholders. The facility includes an initial US$10 million tranche available immediately, and a further US$5 million tranche available if ImpediMed meets prescribed FY25 sales targets and elects to draw on the facility. The facility has a 60-month maturity, with an initial 24-month interest-only period (increasing to 36 months if the second tranche is drawn). The interest rate is based on the Secured Overnight Financing Rate (currently 4.3%) plus a margin of 9.5%, resulting in a 15.8% cash IRR to maturity. ImpediMed will also issue warrants to SWK Funding LLC as part of the transaction.
ImpediMed has not provided any high-importance, price-sensitive forward-looking financial metrics in the announcement.
The announcement does not provide a specific outlook, but it states that the new funding solution gives ImpediMed the time and flexibility required to execute on its business plan and fully capitalise on the BCRL (breast cancer-related lymphedema) opportunity.