New facility includes senior, secured term
loans of up to $45 million
Apyx Medical Corporation (NASDAQ:APYX) (the “Company”),
the manufacturer of a proprietary helium plasma and radiofrequency
technology marketed and sold as Renuvion®, today announced that the
Company and its subsidiaries have entered into a new, five-year
credit agreement with Perceptive Credit Holdings IV, LP
(“Perceptive”), an affiliate of Perceptive Advisors. The Perceptive
Credit Agreement provides for a facility of up to $45 million in
senior secured term loans, with an initial loan of $37.5 million
fully drawn at closing.
“We are excited to announce this new debt facility with
Perceptive Advisors,” said Charlie Goodwin, President and Chief
Executive Officer. “This new facility provides Apyx Medical with
access to additional capital – and at more attractive terms overall
– than our prior agreement, significantly strengthening our balance
sheet and enhancing our financial flexibility.”
“We are excited to partner with Apyx Medical and believe that
Renuvion will be a formidable product in the market as the company
executes on its strategy,” said Sam Chawla, Portfolio Manager of
Perceptive Advisors.
The Perceptive credit facility matures on November 8, 2028 and
includes an initial loan of $37.5 million and a delayed draw loan
of $7.5 million. The initial loan of $37.5 million was fully funded
on November 8, 2023, with approximately $11.0 million of the
proceeds used to satisfy all obligations under the Company’s MidCap
credit agreement, in addition to approximately $2.5 million of
transaction fees and other expenses incurred in connection with the
Perceptive Credit Agreement. The delayed draw loan can be drawn at
the Company’s option until December 31, 2024, upon satisfaction of
certain conditions and covenants, including, but not limited to,
the achievement of a minimum revenue target.
The initial loan and delayed draw loan bear interest at a
floating rate based on one-month SOFR, subject to a floor of 5.0%,
plus 7.0%. The Perceptive Credit Agreement provides for 48 months
of interest-only payments. Subsequent to the interest-only period,
the outstanding principal amount of the loans is repayable in
monthly payments of 3.0% of the outstanding balance on the payment
date. All remaining outstanding principal, together with all
accrued and unpaid interest, is due at maturity. The loans may be
voluntarily prepaid in full, or in part, at any time, subject to
terms and conditions set forth in the Perceptive Credit Agreement.
Additionally, the loans are subject to mandatory prepayment
obligations, pursuant to the terms of the Perceptive Credit
Agreement. The obligations under the Perceptive credit facility are
secured by first priority liens on substantially all of the assets
of the Company.
In connection with the Company’s initial loan under the
Perceptive Credit Agreement, the Company issued Perceptive warrants
to purchase up to 1,250,000 shares of its common stock, par value
$0.001, with an exercise price of $2.43 per share. Upon the
issuance of the delayed draw loan, if applicable, the Company will
issue Perceptive warrants to purchase up to 250,000 shares of its
common stock, par value $0.001, with an exercise price of equal to
the 10-day volume weighted average sale price from the preceding
business day.
Craig-Hallum served as financial advisor to the Company on the
transaction. Additional detail regarding the foregoing financing is
set forth in the Company’s Current Report on Form 8-K, to be filed
with the U.S. Securities and Exchange Commission.
About Apyx Medical
Corporation:
Apyx Medical Corporation is an advanced energy technology
company with a passion for elevating people’s lives through
innovative products, including its Helium Plasma Technology
products marketed and sold as Renuvion in the cosmetic surgery
market and J-Plasma® in the hospital surgical market. Renuvion and
J-Plasma offer surgeons a unique ability to provide controlled heat
to tissue to achieve their desired results. The Company also
leverages its deep expertise and decades of experience in unique
waveforms through OEM agreements with other medical device
manufacturers. For further information about the Company and its
products, please refer to the Apyx Medical Corporation website at
www.ApyxMedical.com.
About Perceptive
Advisors:
Founded in 1999, Perceptive Advisors is a leading healthcare
focused investment firm with approximately $9.5 billion of
regulatory assets under management. Since inception, Perceptive
Advisors has focused on supporting progress in the life sciences
industry by identifying opportunities and directing financial
resources toward the most promising technologies in modern
healthcare. For more information about Perceptive, visit
www.perceptivelife.com.
Cautionary Statement on Forward-Looking
Statements:
Certain matters discussed in this release and oral statements
made from time to time by representatives of the Company may
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 and the Federal
securities laws. Although the Company believes that the
expectations reflected in such forward-looking statements are based
upon reasonable assumptions, it can give no assurance that its
expectations will be achieved.
All statements other than statements of historical fact are
statements that could be deemed forward-looking statements,
including but not limited to, projections of net revenue, margins,
expenses, net earnings, net earnings per share, or other financial
items; projections or assumptions concerning the possible receipt
by the Company of any regulatory approvals from any government
agency or instrumentality including but not limited to the U.S.
Food and Drug Administration (the “FDA”), supply chain disruptions,
component shortages, manufacturing disruptions or logistics
challenges; or macroeconomic or geopolitical matters and the impact
of those matters on the Company’s financial performance.
Forward-looking statements and information are subject to
certain risks, trends and uncertainties that could cause actual
results to differ materially from those projected. Many of these
factors are beyond the Company’s ability to control or predict.
Important factors that may cause the Company’s actual results to
differ materially and that could impact the Company and the
statements contained in this release include but are not limited to
risks, uncertainties and assumptions relating to the regulatory
environment in which the Company is subject to, including the
Company’s ability to gain requisite approvals for its products from
the FDA and other governmental and regulatory bodies, both
domestically and internationally; the impact of the March 14, 2022
FDA Safety Communication on our business and operations; sudden or
extreme volatility in commodity prices and availability, including
supply chain disruptions; changes in general economic, business or
demographic conditions or trends; changes in and effects of the
geopolitical environment; liabilities and costs which the Company
may incur from pending or threatened litigations, claims, disputes
or investigations; and other risks that are described in the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2022 and the Company’s other filings with the
Securities and Exchange Commission. For forward-looking statements
in this release, the Company claims the protection of the safe
harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995. The Company assumes no
obligation to update or supplement any forward-looking statements
whether as a result of new information, future events or
otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231109473268/en/
Investor Relations:
ICR Westwicke on behalf of Apyx Medical Corporation Mike
Piccinino, CFA investor.relations@apyxmedical.com
Apyx Medical (NASDAQ:APYX)
Historical Stock Chart
From Apr 2024 to May 2024
Apyx Medical (NASDAQ:APYX)
Historical Stock Chart
From May 2023 to May 2024