ReWalk Robotics, Yokneam Ilit, Israel, and Marlborough, Massachusetts, has entered into an agreement with Kreos Capital V (Expert Fund) Limited for a $20 million line of credit. ReWalk drew down an initial tranche of $12 million. Additional tranches are subject to certain conditions, with a minimum drawdown of $2 million per tranche. Proceeds from the financing will be used for working capital and market expansion.
Under the terms of the agreement, interest-only payments will be due for the first 12 months at a rate of 10.75 percent per annum. Thereafter, monthly principal and interest payments will be due through the December 2018 maturity date, which can be extended by an additional 12 months subject to certain conditions. Additionally, Kreos was issued a $1.15 million warrant to purchase ordinary shares of the company at an exercise price of $9.64 per share, which represented the average of the closing prices of the ordinary shares for the 30-day calendar period prior to the date of the issuance of the warrant, subject to adjustment as set forth in the warrant. In the event the company draws down any additional funds subsequent to the first tranche, the warrant amount will be increased by 5.75 percent of any such additional drawdowns.
“This debt financing agreement provides added funding to support our growth and strategic initiatives,” said Larry Jasinski, CEO of ReWalk.
