Onward Medical N.V. announced that it has signed a loan agreement in the amount of up to ?52.5 million on June 28, 2024. The transaction will include participation from new investor, Runway Growth Capital LLC. The facility is divided into five individual credit tranches. The first initial credit tranche of ?16.0 million will be available upon signing of the Loan Agreement and will be drawn down immediately. Three subsequent credit tranches of ?14.0 million, up to ?5.0 million and up to ?7.5 million will be available to be drawn by the Company until March 31, 2025, July 31, 2026 and January 31, 2027 respectively, in each case subject to the Company?s achievement of certain milestones under the Loan Agreement. The fifth credit tranche of up to ?10.0 million is uncommitted and available in the first quarter of 2027 upon the sole discretion of the Lender. The loan bears interest at a rate equal to Term Secured Overnight Financing Rate (SOFR) for a three month interest period, currently at 6.00% and subject to a 4.25% floor, plus a margin of 6.50%. In addition, upon signing of the debt financing the Company will issue to the Lender warrants which will entitle the Lender to purchase ordinary shares in the capital of the Company at an exercise price per newly issued share calculated on the basis of the lowest 30 day volume-weighted average price between April 9, 2024 and the signing of the debt financing. The number of shares subject to the warrants are 5.00% of the drawn down principal amount initially and upon each subsequent loan advance, divided by the exercise price of ?4.83.


On the same date, the company has received ?16 million in its firs tranche.