Sussex’s TruSpine agrees bridge loan and £2.4m equity investment letter of intent
West Sussex-based spinal stabilisation medical device firm TruSpine Technologies Plc has agreed a £200,000 bridging loan facility and non-binding letter of intent to provide £2.4 million equity with a UK investment group.
The bridge loan will see £200,000 made available immediately, with eight per cent interest per annum, and will be re-payable from the proceeds of the first stage of the non-binding letter of intent or by 30 June 2023, whichever is earlier.
In order to receive the equity funding, TruSpine has agreed to appoint a non-executive director, proposed by the investment group, and move non-executive director Dr Timothy Evans to an executive director role.
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The first tranche of the investment agreement, which is expected no later than 31 January if certain requirements are met, will see an £800,000 investment at four pence per ordinary share drawn upon the signing of the agreement.
One of these requirements, the completion of a due diligence process, is described as “largely complete”, having started early in November of last year.
Due to its non-binding status, there is no certainty the investment group will enter into the Investment Agreement. In this case TruSpine will need to raise more funds in the short term.
Ian Roberts, CEO of TruSpine said: "The proposed equity funding will ensure that our ground-breaking first spinal stabilisation device, the Cervi-Lok, can continue on the 510k pathway through to FDA clearance and onto commercialisation."
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