LOS
ANGELES, July 7, 2022 /PRNewswire/ -- Divergent
Technologies Inc. ("Divergent"), the company that has developed the
world's first end-to-end digital production system to revolutionize
industrial-scale manufacturing, announced today that it has closed
a new $60 million venture loan
facility led by Horizon Technology Finance Corporation (NASDAQ:
HRZN) ("Horizon"), and a new $20
million revolving line of credit provided by Bridge Bank, a
division of Western Alliance Bank (NYSE: WAL) ("Bridge Bank"). The
new facilities follow Divergent's successful $160 million Series C funding earlier this
year.
Under the terms of the venture loan agreement, Horizon, a
leading specialty finance company that provides capital in the form
of secured loans to venture capital backed companies in the
technology, life science, healthcare information and services, and
sustainability industries, funded $15
million of the initial draw from the venture loan facility,
and a private investment vehicle managed by Horizon Technology
Finance Management LLC, Horizon's adviser, funded $5 million. The venture loan facility provides up
to an additional $40 million of
funding to Divergent upon meeting certain milestones.
Under the terms of the line of credit, Bridge Bank, whose
Technology Banking Group provides financing solutions to venture
capital backed technology companies at all stages of their life
cycle, established a $20 million line
of credit with Divergent who will use the funds for growth and
working capital purposes.
Divergent is building a global manufacturing infrastructure
platform for the next generation industrial economy, with a current
focus on the automotive industry. Its full-stack, state-of-the-art
Divergent Adaptive Production System ("DAPS") simultaneously aids
in automating design, additive manufacturing (3-D printing) and
assembling complex vehicle structures. As a result, the DAPS
platform significantly reduces development and production
timelines, and Divergent has established a world-class pipeline of
OEM customers.
"We are pleased to receive support from Horizon and Bridge Bank
as we continue to revolutionize complex industrial manufacturing,
initially with automobiles and over time with aerospace and
defense," said Kevin Czinger, lead
inventor, founder and Chief Executive Officer of Divergent. "DAPS
makes it possible for the first time for manufacturers to forego
the capital-intensive static design system they have been
accustomed to for over a century, and utilize a variable cost
flexible design system that is significantly more efficient.
Through this added efficiency, DAPS radically reduces the impact of
manufacturing on the environment, thereby making a meaningful
contribution to global sustainability."
"Divergent is changing the game for manufacturing vehicles, with
their DAPS end-to-end platform providing manufacturers with
unmatched cost savings and flexibility," said Gerald A. Michaud, President of Horizon. "With
over 500 patent filings, DAPS is a cutting-edge approach that
enables Divergent customers to create new product models much more
quickly and efficiently. We are excited to support Divergent's
growth and expansion."
"Divergent is radically transforming auto manufacturing
economics and environmental impact, and it is exciting to see
Divergent deliver a solution that addresses system level
challenges," said Mike Lederman,
Senior Managing Director in Bridge Bank's Technology Banking Group.
"Divergent is rethinking the manufacturing process for the auto
industry and we are pleased to help support the company's
evolution."
BayCross Capital Group acted as the placement agent on the debt
(the securities portion of which was conducted via StillPoint
Capital, LLC Member FINRA/SIPC).
About Divergent
Divergent harnesses additive manufacturing to unleash innovation
in automotive manufacturing. Their breakthrough technology platform
transforms the economics and environmental impact of designing and
manufacturing complex structures such as cars. Divergent's
planet-saving manufacturing approach can be used for volume
manufacturing without costly, traditional tooling and capital
expenses, enabling manufacturers to quickly iterate and invent new
vehicle models for competitive advantage. For more information,
please visit www.divergent3d.com.
About Horizon Technology Finance
Horizon Technology Finance Corporation (NASDAQ: HRZN) is a
leading specialty finance company that provides capital in the form
of secured loans to venture capital backed companies in the
technology, life science, healthcare information and services, and
sustainability industries. The investment objective of HRZN is to
maximize its investment portfolio's return by generating current
income from the debt investments it makes and capital appreciation
from the warrants it receives when making such debt investments.
Horizon Technology Finance Management LLC is headquartered in
Farmington, Connecticut, with a
regional office in Pleasanton,
California, and investment professionals located in
Portland, Maine, Austin, Texas, and Reston, Virginia. To learn more, please visit
horizontechfinance.com.
About Bridge Bank
Bridge Bank, a division of Western Alliance Bank, Member FDIC,
helps business clients realize their ambitions. Founded in 2001 in
Silicon Valley, Bridge Bank offers a better way to bank for small
to mid-market businesses across many industries, as well as
emerging technology companies and the private equity community.
Geared to serving both venture-backed and non-venture-backed
companies, Bridge Bank delivers a broad scope of financial
solutions, including startup banking, capital, equipment and
working capital credit facilities, venture debt, treasury
management, asset-based lending, SBA and commercial real estate
loans and a full line of international products and services. Based
in San Jose, Bridge Bank has 15
offices in major markets across the country, along with Western
Alliance Bank's powerful array of specialized financial services.
Western Alliance Bank is the primary subsidiary of Phoenix-based Western Alliance Bancorporation,
with more than $60 billion in assets. Western Alliance is #2
best-performing of the 50 largest public U.S. banks in the S&P
Global Market Intelligence listing for 2021 and ranks high year
after year on the Forbes list of "America's Best Banks." For more
information, visit Bridge Bank online.
Contacts:
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For Horizon
Technology Finance
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For Divergent
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Investor
Relations:
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Public
Relations:
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ICR
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DKC
|
Garrett
Edson
|
Sean F.
Cassidy
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ir@horizontechfinance.com
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sean_cassidy@dkcnews.com
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(860)
284-6450
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(212)
981-5233
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Media
Relations:
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ICR
|
Chris
Gillick
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HorizonPR@icrinc.com
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(646)
677-1819
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SOURCE Horizon Technology Finance Corporation