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CytoSorbents Announces Amendment to Loan Agreement with Bridge Bank, Receives an Additional $5 Million Cash from New Term Loan
MONMOUTH JUNCTION, N.J., Aug. 5, 2019 /PRNewswire/ -- CytoSorbents Corporation (NASDAQ: CTSO), a critical care immunotherapy leader using its CytoSorb® blood
About this update from Cytosorbents Corporation
[{"type":"text","content":"MONMOUTH JUNCTION, N.J., Aug. 5, 2019 /PRNewswire/ -- CytoSorbents Corporation (NASDAQ: CTSO), a critical care immunotherapy leader using its CytoSorb® blood purification technology to treat deadly inflammation in critically-ill and cardiac surgery patients around the world, announces it has received an additional $5 million in cash through an amended loan agreement with Bridge Bank's Life Sciences Group.\n\n \nOn July 31, 2019 (the Settlement Date\"), the Company entered into the First Amendment to the 2018 Amended and Restated Loan and Security Agreement with Bridge Bank. This amendment provided the Company with $5 million of cash proceeds from an additional term loan (Term Loan B) and extended the interest-only period for the original $10 million loan (Term Loan A) and Term Loan B through April 2020, with the ability to further extend the interest-only period through October 2020, provided that certain conditions are met. \nThe 2018 Success Fee Letter (the \"Letter\") was also amended. Under the amended terms, the Company will pay a Success Fee to the Bank in an amount equal to 6.37% of the funded amount of the Term B Loan upon the first occurrence of a \"Liquidity Event\". A Liquidity Event, as defined by the Letter, was amended to include either a traditional change in control of the company, or an increase in the closing price per share for the Company's common stock on the Nasdaq Capital Market that is the greater of (i) 70% or more over $7.05 (the closing price of the Company's common stock on March 28, 2018) for five consecutive business days, or (ii) at least 26.13% more than the average price of Company's common stock for the 365 day period ending on the Settlement Date.\n\"This loan amendment represents a key milestone for our Company that has the potential to increase our working capital by approximately $9 million, by providing an additional $5 million of working capital and potentially deferring the repayment of $4 million of principal by 12 months that was previously scheduled to begin in November 2019. But most importantly, it strengthens our balance sheet and provides additional operating capital for us to continue the aggressive pursuit of our clinical trial objectives and to rapidly grow worldwide product sales,\" stated Ms. Kathleen P. Bloch, CPA, MBA, Chief Financial Officer of CytoSorbents. \"We are please...