IMRIS enters into a secured loan facility for $25 million in financing.
, Sept. 16, 2013
/PRNewswire/ - IMRIS Inc. (NASDAQ: IMRS; TSX: IM)
("IMRIS" or the "Company") today announced it has entered into a
secured loan facility agreement (the "Agreement") with Deerfield
Management Company, L.P. ("Deerfield") for $25 million
is a leading healthcare investment firm with more than $3.5
of assets currently under management.
Commented Jay D. Miller, IMRIS president and chief executive officer:
"We are pleased with Deerfield's confidence in our cutting-edge
technology, growth prospects and business strategy. IMRIS has a
compelling line-up of FDA-approved and development-stage products for
the surgical theater that will provide a strong foundation for future
growth. This agreement provides capital to fund our growth initiatives,
strengthen our balance sheet and enable us to focus on developing a
world-class medical device company."
In accordance with the terms of the Agreement, Deerfield advanced $25
million immediately following execution of the Agreement. The loan
matures five years from the date of the Agreement and may be prepaid
subject to certain restrictions contained in the Agreement. The
principal amount of the loan is payable in three equal annual
installments on the third, fourth and fifth anniversaries of the date
of the disbursement, except that, if IMRIS achieves certain revenue
targets, the principal payment due on the third anniversary can be
deferred for up to two years and the payment due on the fourth
anniversary can be deferred for one year. The outstanding principal
amount of the loan at any time will accrue interest at a rate of 9% per
annum. The Agreement contains customary terms and conditions. In
connection with the loan, Deerfield will receive warrants to purchase
6.1 million shares of IMRIS common stock at an exercise price of $1.94
per share, which represents a premium of 5% over the closing price of
the Company's common stock preceding the execution of the Agreement.
Cowen and Company acted as financial advisor to IMRIS and served as
sole arranger for the transaction.
The securities referenced herein have not been registered under the
Securities Act of 1933, as amended, and may not be offered or sold in
the United States absent registration or an applicable exemption from
registration requirements. This press release is neither an offer to
sell nor a solicitation of an offer to buy any of the securities
referenced herein, nor shall there be any sale of these securities in
any state or other jurisdiction in which such offer, solicitation, or
sale would be unlawful prior to registration or qualification under the
securities laws of any state.
IMRIS (NASDAQ: IMRS; TSX: IM) is a global leader in providing image
guided therapy solutions through its VISIUS Surgical Theatre - a
revolutionary, multifunctional surgical environment that provides
unmatched intraoperative vision to clinicians to assist in decision
making and enhance precision in treatment. The multi-room suites
incorporate diagnostic quality high-field MR, CT and angio modalities
accessed effortlessly in the operating room setting. VISIUS Surgical
Theatres serve the neurosurgical, spinal, cardiovascular and
cerebrovascular markets and have been selected by 54 leading medical
institutions around the world.
Deerfield is committed to advancing healthcare through investment,
information and philanthropy.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain or refer to forward-looking information
based on current expectations, including but not limited to IMRIS'
growth prospects and use of proceeds. In some cases, forward-looking
statements can be identified by terminology such as "anticipate",
"may", "expect", "believe", "prospective", "continue" or the negative
of these terms or other similar expressions concerning matters that are
not historical facts. These statements should not be understood as
guarantees of future performance or results. Such statements involve
known and unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements to be materially different
from those implied by such statements. Although such statements are
based on management's reasonable assumptions, there can be no assurance
that actual results will be consistent with such statements.
Forward-looking statements are subject to significant risks and
uncertainties, and other factors that could cause actual results to
differ materially from expected results. These forward looking
statements are made as of the date hereof and we assume no
responsibility to update or revise them to reflect new events or
SOURCE IMRIS Inc.