Acutus Medical Completes First Closing of Transaction with Medtronic and Debt Refinancing to Fund Strategic Growth Priorities
July 01 2022 - 6:30AM
Acutus Medical, Inc. (“Acutus” or the “Company”) (Nasdaq: AFIB), an
arrhythmia management company focused on improving the way cardiac
arrhythmias are diagnosed and treated, today announced the
completion of the first of two closings for its previously
disclosed sale of the Company’s left-heart access portfolio to
Medtronic, Inc. (“Medtronic”) and entry into a new longer-term
credit facility with Deerfield Management Company (“Deerfield”) to
refinance its existing debt. The Company expects these transactions
to fund its long-term growth objectives.
“We continue to advance our strategic initiatives to drive
adoption of our differentiated mapping and therapy platform as well
as improve our financial and operational performance,” said David
Roman, Interim CEO and CFO of Acutus Medical. “The first closing of
the sale of our left-heart access portfolio as well as the
refinancing of our debt structurally transforms the Company’s
financial position and enables us to further invest in critical
product and market development programs. We are pleased with the
progress in our business and the execution of our focused operating
model and will provide further updates on our second quarter
earnings call in August.”
Left-Heart Access Portfolio Sale On June 30,
2022, Acutus completed the first closing of its previously
announced sale of the Company’s left-heart access portfolio, which
includes the AcQCross™ line of sheath-compatible septal crossing
devices, the AcQGuide® MINI integrated crossing device and sheath,
the AcQGuide® FLEX steerable introducer with integrated transseptal
dilator and needle, and the AcQGuide® VUE steerable sheath to
Medtronic.
Under the terms of the agreement, at the first closing,
Medtronic paid cash consideration of $50 million and acquired from
the Company, among other things, intellectual property rights to
the Company’s left-heart access portfolio and certain equipment
used in the manufacturing of these products. Acutus will also be
eligible to receive contingent consideration payments of up to $37
million associated with certain manufacturing and regulatory
milestones. In addition to these payments, Acutus is eligible to
receive up to four years of revenue-based earnouts. Acutus will
continue to commercialize the left-heart access portfolio until the
Company reaches certain milestones to become a supplier to
Medtronic.
Debt Refinancing In addition to the first
closing of the left-heart access portfolio sale, Acutus has closed
a new debt facility with investment funds affiliated with Deerfield
Management for $35 million in aggregate principal with a maturity
date of June 30, 2027 as well as amortization payments becoming due
36, 48 and 60 months following the closing of the loan. In
connection with the refinancing, Acutus has issued warrants to
purchase an aggregate of 3,779,018 shares of common stock to
Deerfield at a price of $1.1114 per share, subject to certain
adjustments. In conjunction with this new facility, the Company
settled outstanding debt obligations under its 2019 credit
agreement.
AdvisorsPerella Weinberg Partners acted as
financial advisor to Acutus, and Davis Polk & Wardwell LLP
served as legal advisors to the Company. Katten Muchin Rosenman LLP
acted as legal advisors to Deerfield Management.
About Acutus Medical, Inc.Acutus is an
arrhythmia management company focused on improving the way cardiac
arrhythmias are diagnosed and treated. Acutus is committed to
advancing the field of electrophysiology with a unique array of
products and technologies which will enable more physicians to
treat more patients more efficiently and effectively. Through
internal product development, acquisitions and global partnerships,
Acutus has established a global sales presence delivering a broad
portfolio of highly differentiated electrophysiology products that
provide its customers with a complete solution for catheter-based
treatment of cardiac arrhythmias. Founded in 2011, Acutus is based
in Carlsbad, California.
Caution Regarding Forward-Looking
StatementsThis press release includes statements that may
constitute “forward-looking” statements, usually containing the
words “believe,” “estimate,” “project,” “expect” or similar
expressions. These forward-looking statements include, without
limitation, statements regarding the Company’s ability to earn
contingent consideration and achieve earnout milestones relating to
its sale of its left-heart access portfolio and its strategic
growth priorities. Forward-looking statements inherently involve
risks and uncertainties that could cause actual results to differ
materially from the forward-looking statements. Factors that would
cause or contribute to such differences include, but are not
limited to, the Company’s ability to continue to manage expenses
and cash burn rate at sustainable levels, continued acceptance of
its products in the marketplace, the effect of global economic
conditions on the ability and willingness of customers to purchase
the Company’s systems and the timing of such purchases, competitive
factors, changes resulting from healthcare policy in the United
States and globally, including changes in government reimbursement
of procedures, dependence upon third-party vendors and
distributors, timing of regulatory approvals, the impact of the
coronavirus (COVID-19) pandemic and Acutus’ response to it, and
other risks discussed in the Company’s periodic and other filings
with the Securities and Exchange Commission, as well as
satisfaction of conditions related to earning contingent
consideration or achieving earnout milestones relating to its sale
of its left-heart access portfolio. By making these forward-looking
statements, Acutus undertakes no obligation to update these
statements for revisions or changes after the date of this release,
except as required by law.
Investor Contact: |
Media Contact: |
Caroline Corner |
Levitate |
Westwicke ICR |
(260) 408-5383 |
D: 415-202-5678 |
acutus@levitatenow.com |
caroline.corner@westwicke.com |
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