ReWalk secures line of credit up to $20 million for market building activities

ReWalk Robotics Ltd. recently announced it has entered an agreement with Kreos Capital V Limited for a line of credit of up to $20 million.

According to a company press release, ReWalk drew down an initial tranche of $12 million. Another $8 million will be available in separate tranches subject to certain conditions. The minimum drawdown is $2 million per tranche.

The agreement stipulates interest-only payments will be due for the first 12 months at 10.75% per annum, after which monthly principal and interest payments will be due through the December 2018 maturity date. The maturity date may be extended by an additional 12 months subject to certain conditions.

Kreos also was issued a warrant in the aggregate amount of $1.15 million to purchase ordinary shares from ReWalk at an exercise price of $9.64 per share, representing the average of the closing prices of the ordinary shares for the 30-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 ReWalk 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,” Larry Jasinski, ReWalk chief executive officer, said in the press release. “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.”

Financing proceeds also will be used for working capital and market expansion. Armentum Partners acted as financial advisor to the company in conjunction with this financing, according to the press release. 



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