ReWalk Robotics Secures Line of Credit of Up to $20 Million to Support Market Building Activities
YOKNEAM ILIT, Israel and MARLBOROUGH, Mass., January 4, 2016 – ReWalk Robotics Ltd. (Nasdaq:RWLK) (“ReWalk” or “the Company”) today announced that it has entered into an agreement with Kreos Capital V (Expert Fund) Limited (“Kreos”) for a line of credit of up to $20 million. ReWalk drew down an initial tranche of $12 million. An additional $8 million dollars will be available in separate tranches subject to certain conditions, with a minimum drawdown of $2 million per tranche.
Under the terms of the agreement, interest-only payments will be due for the first 12 months at a rate of 10.75% 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 warrant in the aggregate amount of $1.15 million to purchase ordinary shares of the Company (“Ordinary Shares”) at an exercise price of $9.64 per share, which represented the average of the closing prices of the Ordinary Shares for the thirty-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% of any such additional draw downs.
“This debt financing agreement provides added funding to support our growth and strategic initiatives,” said Larry Jasinski, Chief Executive Officer. “We remain focused on increasing sales and market penetration and are encouraged by the growing market acceptance of the ReWalk Personal and Rehabilitation systems by end users and coverage providers alike. We expect to use this increased financial flexibility to advance our strategic market development and reimbursement activities to build long-term shareholder value,” he added.
Proceeds from the financing will be used for working capital and market expansion. Armentum Partners acted as financial advisor to the Company in conjunction with this financing.