BG Medicine, Inc. Secures $15 Million Loan Facility From GE Capital and Comerica
February 13 2012 - 7:50AM
BG Medicine, Inc. (Nasdaq:BGMD), a company focused on the
development and commercialization of novel, biomarker-based
diagnostics, announced today that it has entered into a $15.0
million secured loan facility with GE Capital, Healthcare Financial
Services and Comerica Bank. An initial term loan in the aggregate
principal amount of $10 million was funded to the company on
February 10, 2012. Subject to BG Medicine's successful
achievement of certain revenue milestones and other customary
conditions, the company may draw an additional $5 million term loan
on or before February 10, 2013.
"We believe this loan facility provides BG Medicine with
financial flexibility to assist us in our development and
commercialization activities for the automated versions of our BGM
Galectin-3TM test for heart failure in the United States and
worldwide, the potential commercialization of our CardioSCORE
diagnostic test to identify patients at near-term risk of heart
attack and stroke, and the development of additional indications
for our BGM Galectin-3TM test," said Eric Bouvier, President and
CEO of BG Medicine.
"In evaluating several financing options relative to our
business needs, we concluded that this loan facility was
well-suited to provide the capital necessary to further our product
development and commercialization plans while minimizing dilution
to our current shareholders," said Michael W. Rogers, Executive
Vice President and CFO of BG Medicine. "With the $10 million
in proceeds from the initial loan and our cash and cash equivalents
of approximately $24 million at December 31, 2011, this financing
extends our cash runway to advance our operating plans."
The initial term loan accrues interest at a rate of 8% plus the
higher of (a) the 3-month LIBOR (London Bank Inter-Bank Offer Rate)
rate or (b) 1.25% per annum, and has a term of 42
months. Additionally, no principal repayment is due for the
first twelve months of the term. In connection with funding of the
$10 million initial term loan, BG Medicine issued warrants to
purchase 36,657 shares of its common stock with an exercise price
of $6.82 per share. If BG Medicine draws the additional $5
million term loan, it will be obligated to issue additional
warrants to the lenders, consistent with the warrant formula
applicable to the initial term loan.
About BG Medicine, Inc.
BG Medicine, Inc. (Nasdaq:BGMD) is a life sciences company
focused on the discovery, development and commercialization of
novel, biomarker-based cardiovascular diagnostics to address
significant unmet medical needs, improve patient outcomes and
contain healthcare costs. The Company's first commercialized
product, the BGM Galectin-3TM test for use in patients with heart
failure, is available in the United States and Europe. BG
Medicine has also developed CardioSCORE, a blood test designed to
identify individuals at high risk for near-term major
cardiovascular events, such as heart attack and stroke. For
additional information about BG Medicine, heart failure and
galectin-3 testing, please visit www.bg-medicine.com and
www.galectin-3.com.
The BG Medicine Inc. logo is available
at http://www.globenewswire.com/newsroom/prs/?pkgid=8765
About GE Capital, Healthcare Financial
Services
With in-depth industry knowledge and expertise, GE Capital,
Healthcare Financial Services has provided more than $60 billion in
financing in the last 10 years to companies in over 40 healthcare
sub-sectors including senior housing, hospitals, medical offices,
pharmaceuticals and medical devices. Our team of professionals
creates business and financial solutions tailored to meet the
individual needs of our customers. For more information, visit
www.gecapital.com/healthcare.
About Comerica Bank's Technology and Life Sciences
Division
Comerica Bank's Technology and Life Sciences Division is one of
the nation's leading technology banking practices, offering a wide
range of financial services tailored to corporate customers,
entrepreneurs and professionals. Veteran bankers provide credit and
financial services and products to young, growing, professionally
backed technology and life sciences companies, as well as their
more mature counterparts. The Technology and Life Sciences Division
serves all major U.S. technology centers from offices
coast-to-coast and its headquarters in Palo Alto, Calif. Comerica
Bank is a subsidiary of Comerica Incorporated (NYSE:CMA), a
financial services company that is among the 20 largest U.S.
banking companies. For more information, visit
www.comerica.com.
Special Note Regarding Forward-looking
Statements Certain statements made in this news release
contain forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities and Exchange Act of 1934, as amended, that are
intended to be covered by the "safe harbor" created by those
sections. Forward-looking statements, which are based on certain
assumptions and describe our future plans, strategies and
expectations, can generally be identified by the use of
forward-looking terms such as "believe," "expect," "may," "will,"
"should," "could," "seek," "intend," "plan," "estimate,"
"anticipate" or other comparable terms. Forward-looking
statements in this news release address our expectations regarding
our future expenses, development and commercial activities for our
products and pipeline, including, but not limited to, BGM
Galectin-3TM and CardioSCORE , and the adequacy and use of our cash
resources. Forward-looking statements are based on
management's current expectations and involve inherent risks and
uncertainties which could cause actual results to differ materially
from those in the forward-looking statements, as a result of
various factors including those risks and uncertainties described
in the Risk Factors and in Management's Discussion and Analysis of
Financial Condition and Results of Operations sections of our
recent filings with the Securities and Exchange Commission,
including our most recent Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q. We urge you to consider those risks and
uncertainties in evaluating our forward-looking statements.
We caution readers not to place undue reliance upon any such
forward-looking statements, which speak only as of the date made.
Except as otherwise required by the federal securities laws,
we disclaim any obligation or undertaking to publicly release any
updates or revisions to any forward-looking statement contained
herein (or elsewhere) to reflect any change in our expectations
with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.
CONTACT: Michael W. Rogers
EVP & Chief Financial Officer
(781) 890-1199
Comerica (NYSE:CMA)
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