Senseonics Announces Equity Line of Credit Financing Agreement
November 09 2020 - 4:04PM
Business Wire
Energy Capital to Provide up to $12 Million of
Liquidity
Senseonics Holdings, Inc. (NYSE American: SENS), a medical
technology company focused on the development and commercialization
of long-term, implantable continuous glucose monitoring (CGM)
systems for people with diabetes, today announced entrance into an
equity line of credit financing agreement with current shareholder
Energy Capital, LLC for up to $12.0 million.
“This line of credit provides the opportunity to increase
liquidity as needed in 2021 or 2022 for flexibility to ramp
manufacturing operations for the potential 180-day product launch
in the U.S. and to support the continued development of our next
generation 365-day wear sensor,” said Tim Goodnow, PhD, President
and CEO of Senseonics. “The ability to strengthen the balance sheet
according to our needs allows us to be strategic in our value
creating initiatives as we transition commercial responsibilities
to Ascensia Diabetes Care. We appreciate the shared level of
commitment to Senseonics’ long-term success from a top
shareholder.”
Robert J. Smith, Managing Member of Energy Capital, LLC added,
“as a longtime shareholder and supporter of Senseonics, I am
pleased to continue and grow my commitment to the company. Having
watched my father’s experience with Eversense the past two years, I
am a firm believer in the promise of this unique CGM system to
improve the lives of people with diabetes and their families. I am
excited about the future of Senseonics and the potential for
Eversense to become a leader in CGM.”
Subject to the terms and conditions of agreement, the equity
line of credit is accessible at Senseonics’ discretion after
January 21, 2021 if Senseonics’ aggregate cash and cash equivalents
and other available credit are below $8 million and the price of
Senseonics’ common stock is at least $0.25 per share. Investments
of up to $12.0 million by Energy Capital would occur in draws of a
maximum of $4.0 million no more frequently than monthly, whereby
Senseonics would issue preferred stock which will be convertible
into common stock based on the closing price of $0.3951, which was
the volume-weighted average trading price of the common stock on
November 6, 2020. The agreement includes the issuance of warrants
to purchase 10 million shares of common stock to Energy Capital,
with an exercise price of $0.3951 per share. The agreement also
provides Energy Capital the right to buy any undrawn shares of
preferred stock beginning January 1, 2022 and through November 9,
2022 if the shares are not otherwise drawn by Senseonics, subject
to certain other conditions.
About Senseonics
Senseonics Holdings, Inc. is a medical technology company
focused on the design, development and commercialization of
transformational glucose monitoring products designed to help
people with diabetes confidently live their lives with ease.
Senseonics' CGM systems, Eversense® and Eversense® XL, include a
small sensor inserted completely under the skin that communicates
with a smart transmitter worn over the sensor. The glucose data are
automatically sent every 5 minutes to a mobile app on the user's
smartphone.
Forward Looking Statements
Any statements in this press release about future expectations,
plans and prospects for Senseonics, including statements about the
potential to ramp manufacturing for the potential 180-day product
launch in the U.S. in 2021, the continued development of the
365-day wear sensor, the potential investments by Energy Capital
pursuant to the terms of the equity line of credit financing
agreement, the potential for Eversense to improve the lives of
patients and their families, the potential for Eversense to become
a leader in CGM, and other statements containing the words
“believe,” “expect,” “intend,” “may,” “projects,” “will,”
“planned,” and similar expressions, constitute forward-looking
statements within the meaning of The Private Securities Litigation
Reform Act of 1995. Actual results may differ materially from those
indicated by such forward-looking statements as a result of various
important factors, including: Senseonics’ satisfaction of the
conditions for accessing the equity line under the terms of the
agreement with Energy Capital, uncertainties in the regulatory
approval process, uncertainties inherent in the commercial launch
and commercial expansion of the product, uncertainties in insurer,
regulatory and administrative processes and decisions,
uncertainties in the duration and severity of the COVID-19
pandemic, and such other factors as are set forth in the risk
factors detailed in Senseonics’ Annual Report on Form 10-K for the
year ended December 31, 2019, Senseonics’ Quarterly Report on Form
10-Q for the quarter ended September 30, 2020 and Senseonics’ other
filings with the SEC under the heading “Risk Factors.” In addition,
the forward-looking statements included in this press release
represent Senseonics’ views as of the date hereof. Senseonics
anticipates that subsequent events and developments will cause
Senseonics’ views to change. However, while Senseonics may elect to
update these forward-looking statements at some point in the
future, Senseonics specifically disclaims any obligation to do so
except as required by law. These forward-looking statements should
not be relied upon as representing Senseonics’ views as of any date
subsequent to the date hereof.
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version on businesswire.com: https://www.businesswire.com/news/home/20201109006083/en/
Senseonics Investor Contact Lynn Lewis or Philip Taylor
Investor Relations 415-937-5406 investors@senseonics.com
Senseonics Media Contact: Mirasol Panlilio 301-556-1631
Mirasol.panlilio@senseonics.com
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