Wireless cardiac pacing system developer EBR Systems, Inc. (ASX: EBR) has executed an agreement for a five-year US$50m growth capital facility with a leading venture debt provider, Runway Growth Capital, LLC.
Funds raised from the facility provide EBR with funding flexibility and will be used to support growth and commercialisation activities over the medium term.
We are incredibly pleased with our partnership with Runway Growth Capital and the confidence they are showing in EBR Systems and the future of our WiSE technology,” President and CEO of EBR Systems, John McCutcheon, said
“We have reached a huge milestone with the conclusion of recruitment in our pivotal SOLVE trial, and we are progressing at full speed to deliver headline data by 1Q 2023 and preparations for FDA submission.
“In conjunction with EBR’s existing cash reserves this new facility provides EBR with funding flexibility, through the FDA approval process and commercialisation of the WiSE system.
“Given the current macroeconomic conditions globally including rising inflation, increasing interest rates, indicators of a recession, volatility in global equity capital markets falling market indices, this debt facility provides
“EBR with the additional balance sheet flexibility to protect shareholder value as the company progresses through its clinical and commercial milestones. The facility is structured in such a way that the company can choose to draw on future tranches after meeting specific milestones.
“We see that growth capital facilities similar to this are increasingly being used by US based growth healthcare companies as a component of their funding capital structures.
“Consistent with past guidance, EBR is targeting FDA approval in H2 2023 followed by commercial launch focusing on the adoption of WiSE at key, high-volume CRT procedure sites in the US. We are better placed than ever to deliver on our goals, which remain on track.”
Igor DaCruz, Managing Director, Life Sciences, Runway Growth Capital said his business is supporting EBR Systems with flexible, non-dilutive growth capital to support the company’s ongoing pivotal trial.
“We share EBR’s vision for cardiac rhythm disorder treatments that help patients live longer and better lives, and we take great pride in being a steady partner as the company pursues its future FDA approval in the coming years.”
