ConforMIS Inc. (NASDAQ:CFMS), a medical technology company that
develops, manufactures and sells joint replacement implants that
are customized to fit each patient's unique anatomy, announced
today that the Company has secured up to $50 million in debt
financing from Oxford Finance LLC. ConforMIS also announced
today that it has filed a shelf registration statement on Form S-3
with the Securities and Exchange Commission ("SEC").
This debt financing and shelf registration are part of
ConforMIS’ comprehensive financing strategy to optimize its capital
structure and to provide the funding for driving its
commercialization. Through the term loan facility with Oxford
Finance, ConforMIS will initially access $15 million of debt, which
is interest-only for the first two years. Additional funding of $15
million is available to the Company, at its option, through
December 2017 and an additional $20 million is available through
June 2018, subject to the satisfaction of certain revenue
milestones. Upon funding of the second $15 million, the
interest-only period will be extended to three years. The agreement
has a term of five years.
“We believe that patient-specific joint replacement implants are
the future of joint replacements and we are pleased to support
ConforMIS as a technology leader,” said Christopher A. Herr, senior
managing director at Oxford Finance. “The demonstrated clinical
benefits of ConforMIS’ knee replacement systems gives us the
confidence to support ConforMIS’ business model.”
“We are pleased to have the confidence and support of Oxford
Finance, a specialty finance firm that provides senior debt to life
sciences and healthcare services companies,” said Mark Augusti,
ConforMIS’ President and CEO. “This loan facility provides the
funding to support the next stage of commercialization and
strengthens our ability to bring the benefits of patient-specific
knee replacements to orthopedic surgeons and the patients they
serve.”
Upon being declared effective by the SEC, the shelf registration
statement will allow ConforMIS to sell from time to time up to $200
million of its common stock, preferred stock, debt securities,
warrants, or units comprised of any combination of these
securities, for its own account in one or more offerings. The shelf
registration statement, once effective, is intended to provide the
Company flexibility to conduct registered sales of its securities,
subject to market conditions and ConforMIS’ future capital needs.
The terms of any offering under the shelf registration statement
will be established at the time of such offering and will be
described in a prospectus supplement filed with the SEC prior to
the completion of any such offering. The Company has no immediate
plans to undertake an offering under the shelf registration
statement.
The shelf registration statement has been filed with the SEC but
has not yet become effective. The associated securities may not be
sold nor may offers to buy be accepted prior to the time the
registration statement becomes effective. This press release does
not constitute an offer to sell or the solicitation of an offer to
buy any securities. Further, the associated securities will
not be sold in any State in which an offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such State.
ConforMIS currently expects that proceeds from the debt
financing and any future offering under the shelf registration
statement would be used for general corporate purposes, including
but not limited to funding its working capital needs.
About ConforMIS Inc.
ConforMIS is a medical technology company that uses its
proprietary iFit Image-to-Implant technology platform to develop,
manufacture and sell joint replacement implants that are
individually sized and shaped, or customized, to fit each patient's
unique anatomy. ConforMIS offers a broad line of customized
knee implants and pre-sterilized, single-use instruments delivered
in a single package to the hospital. In recent clinical
studies, ConforMIS iTotal CR demonstrated superior clinical
outcomes, including better function and greater patient
satisfaction, compared to traditional, off-the-shelf
implants. ConforMIS owns or exclusively in-licenses
approximately 500 issued patents and pending patent applications
that cover customized implants, patient-specific instrumentation
and related technologies for all major joints.
For more information, visit www.ConforMIS.com. To receive
future releases in e-mail alerts, sign up at
http://ir.ConforMIS.com.
About Oxford Finance LLC
Oxford Finance is a specialty finance firm providing senior
secured loans to public and private life sciences and healthcare
services companies worldwide. For over 20 years, Oxford has
delivered flexible financing solutions to its clients, enabling
these companies to maximize their equity by leveraging their
assets. Oxford has originated over $4 billion in loans, with credit
facilities ranging from $5 million to $100 million. Oxford is
headquartered in Alexandria, Virginia, with additional offices in
San Diego, California; Palo Alto, California; Salt Lake City, Utah
and the greater Boston area. For more information, please visit
www.oxfordfinance.com.
Cautionary Statement Regarding Forward-Looking
Statements
Any statements in this press release about our future
expectations, plans and prospects, including statements about our
financing strategy, future operations, future financial position
and results, market growth, total revenue, the potential impact and
advantages of using customized implants, the expected effectiveness
of our registration statement, any associated offerings of
securities, future tranches of credit and any milestones under the
debt facility, as well as other statements containing the words
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"intend," "may," "might," "plan," "potential," "predict,"
"project," "should," "target," "will," or "would" and similar
expressions, constitute forward-looking statements within the
meaning of the safe harbor provisions of The Private Securities
Litigation Reform Act of 1995. We may not actually achieve the
plans, intentions or expectations disclosed in our forward-looking
statements, and you should not place undue reliance on our
forward-looking statements. Actual results or events could differ
materially from the plans, intentions and expectations disclosed in
the forward-looking statements we make as a result of a variety of
risks and uncertainties, including risks related to our estimates
regarding the potential market opportunity for our current and
future products, our expectations regarding our sales, expenses,
gross margins and other results of operations, our ability to repay
our debt obligations, and the other risks and uncertainties
described in the "Risk Factors" sections of our public filings with
the Securities and Exchange Commission. In addition, the
forward-looking statements included in this press release represent
our views as of the date hereof. We anticipate that subsequent
events and developments may cause our views to change. However,
while we may elect to update these forward-looking statements at
some point in the future, we specifically disclaim any obligation
to do so. These forward-looking statements should not be relied
upon as representing our views as of any date subsequent to the
date hereof.
CONTACT:
Investor contact:
Oksana Bradley
ir@conformis.com
(781) 374-5598
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