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Rockwell Medical, Inc. Announces $35 Million Debt Financing Agreement with Innovatus Capital Partners, LLC
First $22.5 million tranche funded at closing WIXOM, Mich., March 17, 2020 (GLOBE NEWSWIRE) -- Rockwell Medical, Inc. (NASDAQ:RMTI) ("Rockwell Medical" or the
About this update from Rockwell Medical, Inc.
[{"type":"text","content":"First $22.5 million tranche funded at closing\nWIXOM, Mich., March 17, 2020 (GLOBE NEWSWIRE) -- Rockwell Medical, Inc. (NASDAQ:RMTI) (\"Rockwell Medical\" or the \"Company\"), a biopharmaceutical company dedicated to transforming anemia management and improving outcomes for patients around the world, today announced that it has entered into a debt financing agreement with an affiliate of Innovatus Capital Partners, LLC (\"Innovatus\") to provide the Company with up to $35.0 million in term loans.\n \"We are pleased to partner with Innovatus on this transaction,\" said Stuart Paul, President and Chief Executive Officer of Rockwell Medical. \"This financing will provide flexibility as we continue our mission to advance our novel therapeutic, Triferic, and to transform the way anemia is managed around the world,\" concluded Mr. Paul. On March 16, 2020, the Company entered into a loan and security agreement (the \"Loan Agreement\") with Innovatus pursuant to which Innovatus has agreed to make certain term loans in the aggregate principal amount of up to $35.0 million, with the funding of the first $22.5 million tranche funded at closing. The Company will be eligible to draw on a second tranche of $5,000,000 upon achievement of certain milestones, including the U.S. Food and Drug Administration approval of the Company’s NDA for I.V. Triferic. The Company will be eligible to draw on a third tranche of $7.5 million upon the achievement of certain additional milestones, including the achievement of certain Triferic sales thresholds. The Company is entitled to make interest-only payments for thirty months, or up to thirty-six months if certain conditions are met. The loans will mature on the fifth anniversary of the initial funding date. The Loan Agreement includes customary warrant coverage and is secured by all of the Company’s assets. Proceeds will be used for working capital purposes. \"We are delighted to partner with Rockwell Medical in its pursuit of transforming anemia management for dialysis patients,\" stated Claes Ekstrom, Managing Director at Innovatus. This transaction is the culmination of a multi-step financing process that Rockwell Medical initiated during the fourth quarter of 2019. At the urging of shareholders, the Company prioritized non-dilutive financing options as part of the process, and the Company consummated th...