Yesterday, Cytori Therapeutics announced that it has entered into a secured loan facility from GE Capital, Healthcare Financial Services, Oxford Finance Corporation and Silicon Valley Bank. The loan, funded June 14, 2010, is worth $20 million.
The loan term is three years at 9.9% with principal repayments deferred for ten months. Cytori will use $4.4 million of the proceeds to refinance a 2008 loan with GE Capital, Healthcare Financial Services and Silicon Valley Bank. Additionally, Cytori will issue warrants to the lenders to purchase 101,266 shares of its common stock for $3.95 per share.
Cytori will use the funds to support commercialization and clinical development initiatives in Europe, Asia and the United States. The company anticipates that these amounts will fund their operations into 2012. The loan also strengthens Cytori’s cash position.