Lucira Health Secures Debt Facility of Up to $80 Million from Hercules Capital and Silicon Valley Bank
February 08 2022 - 7:00AM
Lucira Health, Inc. ("Lucira Health" or "Lucira") (Nasdaq: LHDX), a
medical technology company focused on the development and
commercialization of transformative and innovative infectious
disease test kits, today announced that on February 4, 2022, it
entered into a debt facility of up to $80 million with Hercules
Capital, Inc. (NYSE: HTGC) ("Hercules") and Silicon Valley Bank
(NASDAQ: SIVB) ("SVB").
"This debt financing will provide Lucira latitude to broaden
commercial activities and to bolster capital reserves," said Erik
Engelson, President and Chief Executive Officer of Lucira Health.
"We are pleased to have the support of Hercules and SVB, both
highly respected lenders in the life science sectors, and
anticipate that this financing, along with our available cash of
approximately $106 million as of December 31, 2021, will reinforce
Lucira's financial health and provide for continued growth
opportunities."
Under the term loan, Lucira received the first tranche of $30
million at closing. A second tranche of $20 million will be
available between September 1, 2022 and March 31, 2023 upon
achieving certain milestones. A third tranche of $15 million will
be available prior to June 15, 2023 upon achieving certain
milestones. A fouth tranche of $15 million may be made available
prior to March 15, 2024, as determined by Hercules and SVB.
"Hercules is proud to partner with Lucira in the expanded
commercialization of their single-use molecular diagnostic test
kits," stated Cristy Barnes, managing director at Hercules. "This
substantial financial commitment from Hercules exemplifies our
dynamic ability to customize financing solutions to support
innovative life sciences companies, such as Lucira, through
development and commercialization."
"Silicon Valley Bank is pleased to be expanding its partnership
with Lucira Health to support their efforts to make easy-to-use and
highly accurate at-home testing available worldwide via their novel
infectious disease test kits," said Kristina Peralta, Senior Vice
President, Life Science & Healthcare at Silicon Valley
Bank.
The data relating to available cash as of December 31, 2021
presented in this press release reflect our preliminary estimated
unaudited financial results for the fourth quarter and year ended
December 31, 2021, based upon information available to us as of the
date of this press release. We have provided preliminary data
primarily because our financial closing procedures for the year
ended December 31, 2021 are not yet complete. The data are not a
comprehensive statement of our results for this period, and our
actual results may differ materially from these preliminary data.
Our actual results remain subject to the completion of management's
and our audit committee's reviews and our other financial closing
processes as well as the completion and preparation of our
financial data for the fourth quarter and year ended December 31,
2021. Our independent registered public accounting firm has not
audited, reviewed, compiled or performed any procedures with
respect to such preliminary data as of December 31, 2021. During
the course of the preparation of our financial statements and
related notes and the completion of the audit for the fourth
quarter and year ended December 31, 2021, additional adjustments to
the preliminary financial information presented here may be
identified, and our final results for these periods may vary from
this preliminary data . This preliminary data should not be
considered a substitute for the financial statements to be prepared
in accordance with accounting principles generally accepted in the
United States and to be filed with the Securities and Exchange
Commission in our Annual Report on Form 10-K for the year ended
December 31, 2021 once it becomes available. Lucira expects to
provide fourth quarter and full year 2021 financial results and
2022 guidance during its fourth quarter 2021 earnings call in March
2022.
About Lucira Health
Lucira is a medical technology company focused on the
development and commercialization of transformative and innovative
infectious disease test kits. Lucira's testing platform produces
lab quality molecular testing in a single-use, consumer-friendly,
palm-size test kit powered by two AA batteries. Lucira designed its
test kits to provide accurate, reliable, and on-the-spot molecular
test results anywhere and at any time. The Lucira™ Check-It
COVID-19 Test Kit (OTC) and Lucira™ COVID-19 All-In-One Test Kit
(Rx) are designed to provide a clinically relevant COVID-19 result
within 30 minutes from sample collection. For more information,
visit www.lucirahealth.com.
About Hercules Capital, Inc.
Hercules Capital, Inc. (NYSE: HTGC) is the leading and largest
specialty finance company focused on providing senior secured
venture growth loans to high-growth, innovative venture
capital-backed companies in a broad variety of technology, life
sciences and sustainable and renewable technology industries. Since
inception in 2003, Hercules has committed more than $13 billion to
over 540 companies and is the lender of choice for entrepreneurs
and venture capital firms seeking growth capital financing.
Companies interested in learning more about financing opportunities
should contact info@htgc.com, or call 650-289-3060.
About Silicon Valley Bank
Silicon Valley Bank (SVB) helps innovative companies and their
investors move bold ideas forward rapidly. SVB provides targeted
financial services and expertise through its offices in innovation
centers around the world. With commercial, international and
private banking services, SVB helps address the unique needs of
innovators. Learn more at svb.com.
Forward Looking Statements
Statements contained in this press release regarding matters
that are not historical facts are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Because such statements are subject to risks and
uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements. Words such
as "can," "plans," "will," "may," "anticipates," "expects,"
"potential," and similar expressions are intended to identify
forward-looking statements. These forward-looking statements are
based upon Lucira's current expectations and involve assumptions
that may never materialize or may prove to be incorrect. Actual
results could differ materially from those anticipated in such
forward-looking statements as a result of various risks and
uncertainties, including our ability to increase production,
streamline operations and increase product availability; the
success of our test platform with COVID-19 including its variants,
the extent and duration of the COVID-19 pandemic and our
expectations regarding customer and user demand for our COVID-19
test kit; our ability to obtain and maintain regulatory approval
for our test kits, including our existing Emergency Use
Authorization for our COVID-19 test kits; the performance of, and
our reliance on, third parties in connection with the
commercialization of our test kits, including Jabil Inc. and our
single-source suppliers; our ability to successfully continue to
expand internationally; any impact on our ability to market our
products; demand for our products due to deferral of procedures
using our products or disruption in our supply chain; our ability
to achieve or sustain profitability; our ability to gain market
acceptance for our products and to accurately forecast and meet
customer demand; our ability to compete successfully; our ability
to enhance and expand our product offerings, broaden commercial
activities and take advantage of growth opportunities; our ability
to accurately predict continued expansion; our ability to
accurately forecast revenue; our ability to bolster capital
reserves and reinforce our financial health; development and
manufacturing problems; capacity constraints or delays in
production of our products; maintenance of coverage and adequate
reimbursement for procedures using our products; and product
defects or failures. These and other risks and uncertainties are
described more fully in the "Risk Factors" section and elsewhere in
our filings with the Securities and Exchange Commission and
available at www.sec.gov, including in our most recent Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q. Any
forward-looking statements that we make in this announcement speak
only as of the date of this press release, and Lucira assumes no
obligation to update forward-looking statements whether as a result
of new information, future events or otherwise after the date of
this press release, except as required under applicable law.
Investor ContactGreg
ChodaczekInvestorrelations@lucirahealth.com332-895-3230
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