Koru Medical Systems, Inc. Enters into A Loan Modification Extension Agreement with Keybank National Association
July 06, 2022 at 10:21 pm
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On June 29, 2022, KORU Medical Systems, Inc. (the Company") entered into a Loan Modification Extension Agreement (the Modification Agreement") with Keybank National Association (Lender") to modify its existing revolving line of credit with Lender in the amount of $3,500,000 (the Loan"). Among other things, the Modification Agreement: (i) extends the maturity date of the Loan to June 1, 2023; (ii) changes the interest rate applicable to the Loan from Prime 1.50% to Prime + 0%; (iii) releases the Company from its obligations under a certain security agreement dated June 24, 2021 pursuant to which the Company had previously granted the Lender a first priority security interest in all equipment, inventory, accounts, instruments, chattel paper and general intangibles of the Company (the Security Agreement"); and (iv) replaces the Security Agreement with a new pledge security agreement dated June 29, 2022 by and between the Company and Lender (the Pledge Agreement"), which Pledge Agreement grants Lender a first priority security interest in certain of the Company's bank accounts as collateral security for the Loan.
KORU Medical Systems, Inc. designs, manufactures, and markets proprietary portable and advanced medical devices primarily for the subcutaneous drug delivery market. It is focused on home and specialty infusion solutions. The Companyâs focus is primarily concentrated on its mechanical infusion products, the FREEDOM Infusion Systems, which include the FREEDOM60 Syringe Driver, the FreedomEdge Syringe Driver, HIgH-Flo Subcutaneous Safety Needle Sets, and Precision Flow Rate Tubing. The devices are used for infusions administered at home and in alternate care settings. Its infusion devices work together as a system to deliver life-saving therapies to patients with chronic illnesses, such as primary immunodeficiency diseases (PIDD) and chronic inflammatory demyelinating polyneuropathy (CIDP). The FREEDOM System operates at a lower pressure than an electrical, volumetric pump and maintains a balance between what a patientâs subcutaneous tissues can tolerate and what the system delivers.