MONMOUTH JUNCTION, N.J.,
July 1, 2016 /PRNewswire/ --
CytoSorbents Corporation (NASDAQ: CTSO), a critical care
immunotherapy leader commercializing its flagship CytoSorb® blood
purification cartridge to prevent or treat deadly inflammation and
organ failure in critically-ill and cardiac surgery patients around
the world, announced that it has closed upon a $10 million senior debt facility with the Life
Sciences Group of Bridge Bank, a division of Western Alliance Bank
(NYSE: WAL).
CytoSorbents Corporation and its U.S. operating subsidiary,
CytoSorbents Medical, Inc. entered into a Loan and Security
Agreement with Bridge Bank, securing an initial $5 million 4-year term loan that was funded on
June 30, 2016. Interest-only
monthly payments are due for the first year and then monthly
principal and interest payments are due through the remainder of
the term. Prior to June 30,
2017, CytoSorbents has the ability, at its discretion, to
receive an additional term loan of $5
million, provided certain conditions are met. If this
occurs, the period of interest-only payments on both term loans
will be extended by six months through January 31, 2018, followed by 30 months of
straight line amortization through the July
1, 2020 maturity date. The Company intends to use the
proceeds from the loan to provide working capital to fund ongoing
operations and to support clinical trials.
"This non-dilutive financing further strengthens our balance
sheet at an attractive cost of capital. Importantly, it will
allow us to continue to pursue our aggressive growth strategy and
clinical trial objectives as we increase product sales worldwide
and move towards operating cash flow breakeven," stated Ms.
Kathleen P. Bloch, CPA, MBA, Chief
Financial Officer of CytoSorbents Corporation. "We welcome
this new relationship with Bridge Bank, a reputable and premier
industry provider with a broad scope of financial services."
"We have been following CytoSorbents for several years now, and
believe they possess a truly innovative technology in the life
sciences space which could transform critical care medicine and
cardiac surgery and save lives throughout the world," said Mr.
Justin McDonie, Senior Vice
President and Managing Director for Bridge Bank. "We are
pleased to provide this growth capital at this important juncture
in CytoSorbents' evolution and look forward to helping make the
company a success."
About Bridge Bank and Western Alliance Bank (NYSE:
WAL)
Bridge Bank is a division of Western Alliance Bank, the
go-to-bank for business in its growing markets. Bridge Bank was
founded in 2001 in Silicon Valley to offer a better way to bank for
small-market and middle-market businesses from across many
industries, as well as emerging technology companies and the
private equity community. Geared to serving both venture-backed and
non-venture-backed companies, Bridge Bank offers a broad scope of
financial solutions including growth capital, equipment and working
capital credit facilities, sustainable energy project finance,
venture debt, treasury management, asset-based lending, SBA and
commercial real estate loans, ESOP finance and a full line of
international products and services. Based in San Jose, Bridge Bank has 10 offices in major
markets across the country along with Western Alliance Bank's
robust national platform of specialized financial services. Western
Alliance Bank is the primary subsidiary of Phoenix-based Western Alliance Bancorporation.
With $15 billion in assets, Western
Alliance Bancorporation (NYSE: WAL) is one of the fastest-growing
bank holding companies in the U.S. and recognized as #10 on the
Forbes 2016 "Best Banks in America" list. For more information,
visit www.bridgebank.com or follow us on Twitter @Bridgebank.
About CytoSorbents Corporation (NASDAQ:
CTSO)
CytoSorbents Corporation is a leader in critical care
immunotherapy, specializing in blood purification. Its
flagship product, CytoSorb®, is approved in the European Union with
distribution in 34 countries around the world, as a safe and
effective extracorporeal cytokine adsorber, designed to reduce the
"cytokine storm" or "cytokine release syndrome" that could
otherwise cause massive inflammation, organ failure and death in
common critical illnesses such as sepsis, burn injury, trauma, lung
injury, and pancreatitis, as well as in cancer immunotherapy.
These are conditions where the risk of death is extremely high, yet
no effective treatments exist. CytoSorb® is also being used
during and after cardiac surgery to remove inflammatory mediators,
such as cytokines and free hemoglobin, which can lead to
post-operative complications, including multiple organ
failure. CytoSorb® has been used safely in more than 12,000
human treatments to date.
CytoSorbents' purification technologies are based on
biocompatible, highly porous polymer beads that can actively remove
toxic substances from blood and other bodily fluids by pore capture
and surface adsorption. The Company has numerous products
under development based upon this unique blood purification
technology, protected by 32 issued U.S. patents and multiple
applications pending, including HemoDefend™, ContrastSorb,
DrugSorb, and others. For more information, please visit the
Company's websites: http://www.cytosorbents.com and
http://www.cytosorb.com or follow us on Facebook and
Twitter
Forward-Looking Statements
This press release includes forward-looking statements intended
to qualify for the safe harbor from liability established by the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, but are not limited to,
statements about our plans, objectives, representations and
contentions and are not historical facts and typically are
identified by use of terms such as "may," "should," "could,"
"expect," "plan," "anticipate," "believe," "estimate," "predict,"
"potential," "continue" and similar words, although some
forward-looking statements are expressed differently. You should be
aware that the forward-looking statements in this press release
represent management's current judgment and expectations, but our
actual results, events and performance could differ materially from
those in the forward-looking statements. Factors which could cause
or contribute to such differences include, but are not limited to,
the risks discussed in our Annual Report on Form 10-K, filed with
the SEC on March 9, 2016, as updated by the risks reported in
our Quarterly Reports on Form 10-Q, and in the press releases and
other communications to shareholders issued by us from time to time
which attempt to advise interested parties of the risks and factors
which may affect our business. We caution you not to place undue
reliance upon any such forward-looking statements. We undertake no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events,
or otherwise, other than as required under the Federal securities
laws.
Cytosorbents
Contact:
Amy
Vogel
Investor
Relations
(732) 329-8885 ext. *825
avogel@cytosorbents.com
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SOURCE CytoSorbents Corporation