Nuvectra Extends Timeline of Existing Credit Facility
February 14 2017 - 4:01PM
Nuvectra Corporation (NASDAQ:NVTR), a neurostimulation medical
device company, announced today that it has reached an agreement
with the lenders of its $45 million credit facility, Silicon Valley
Bank and Oxford Finance, to extend the availability of the final
two tranches of the facility.
On March 18, 2016, the Company entered into a loan agreement
with Silicon Valley Bank and Oxford Finance consisting of a $40.0
million term loan credit facility, from which $15.0 million was
funded at the closing of the agreement, and a $5.0 million
revolving line commitment.
The six-month extension on each of its Term B
and Term C commitments allows the Company to draw down the second
tranche worth $12.5 million by December 31, 2017, and the third and
final tranche also worth $12.5 million by June 30, 2018. The
original agreement made each tranche available through June 30,
2017 and December 31, 2017 respectively.
Walter Berger, Chief Operating Officer & Chief Financial
Officer, commented, “We are very pleased to announce this six-month
extension, which increases our flexibility to access additional
capital in line with our needs as we grow our commercial footprint.
We thank our partners at Silicon Valley Bank and Oxford Finance for
their continued support, and look forward to continuing to execute
our long term growth strategies.”
About Nuvectra Corporation NuvectraTM is a
neurostimulation company committed to helping physicians improve
the lives of people with chronic neurological conditions. The
Algovita® Spinal Cord Stimulation (SCS) System is our first
commercial offering and is CE marked and FDA approved for the
treatment of chronic intractable pain of the trunk and/or limbs.
Our innovative technology platform also has capabilities under
development to support other neurological indications such as
sacral nerve stimulation (SNS), and deep brain stimulation (DBS).
In addition, our NeuroNexus subsidiary designs, manufactures and
markets leading-edge neural-interface technologies for the
neuroscience clinical research market. Visit the Nuvectra website
at www.nuvectramed.com.
Cautionary Note Regarding Forward-Looking
StatementsThis press release contains "forward-looking
statements," including statements we make regarding the outlook for
Nuvectra as an independent publicly-traded company. Forward-looking
statements are based only on our current beliefs, expectations and
assumptions regarding the future of our business, future plans and
strategies, projections, anticipated events and trends, the economy
and other future conditions, and therefore they are subject to
inherent uncertainties, risks and changes in circumstances that are
difficult to predict and may be outside of our control. Our actual
performance may differ materially from those indicated in the
forward-looking statements. Therefore, you should not rely on any
of these forward-looking statements. Any forward-looking statement
made by us is based only on information currently available to us
and speaks only as of the date on which it is made. Important
factors that could cause our actual results to differ materially
from those indicated in the forward-looking statements include: (i)
the timing of the commercial launch of Algovita in the United
States; (ii) our ability to successfully commercialize Algovita and
develop and commercialize enhancements to Algovita; (iii) the
uncertainty of obtaining regulatory approvals in the United
States and Europe for our Virtis SNS system; (iv)
our ability to successfully launch and commercialize the Virtis SNS
system if it receives regulatory approval; (v) the outcome of our
development plans for our neurostimulation technology platform,
including our ability to identify additional indications or
conditions for which we may develop neurostimulation medical
devices or therapies and seek regulatory approval thereof; (vi) our
ability to identify business development and growth opportunities
and to successfully execute on our strategy, including our ability
to seek and develop strategic partnerships with third parties to,
among other things, fund clinical and development costs for new
product offerings; (vii) the performance by our development
partners, including Aleva Neurotherapeutics, S.A., of their
obligations under their agreements with us; (viii) the scope of
protection for our intellectual property rights covering Algovita
and other products using our neurostimulation technology platform,
along with any product enhancements; (ix) our ability to
successfully build an effective commercial infrastructure and sales
force in the United States; (x) our compliance with all regulatory
and legal requirements regarding implantable medical devices and
interactions with healthcare professionals; and (xi) any product
recalls or the receipt of any warning letters from any governmental
or regulatory agency. Please see the sections entitled
"Cautionary Statement Concerning Forward-Looking Statements" and
"Risk Factors" in Nuvectra's Registration Statement on Form 10 for
a description of these and other risks and uncertainties. We
undertake no obligation to publicly update any forward-looking
statement, whether written or oral, that may be made from time to
time, whether as a result of new information, future developments
or otherwise.
Company Contacts:
Nuvectra Corporation
Walter Berger, Chief Operating Officer and Chief Financial Officer
(214) 474-3102
wberger@nuvectramed.com
Jennifer Armstrong, Media Relations
(214) 474-3110
jarmstrong@nuvectramed.com
Investor Contacts:
The Ruth Group
Nick Laudico
(646) 536-7030
nlaudico@theruthgroup.com
Zack Kubow
(646) 536-7020
zkubow@theruthgroup.com
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