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CytoSorbents Closes $10MM Debt Financing With Bridge Bank

July 05, 2016, 07:22 AM
Filed Under: Medical

CytoSorbents Corporation, a critical care immunotherapy leader commercializing its flagship CytoSorb blood purification cartridge to prevent or treat deadly inflammation and organ failure in critically-ill and cardiac surgery patients around the world, announced that it has closed upon a $10 million senior debt facility with the Life Sciences Group of Bridge Bank, a division of Western Alliance Bank.

CytoSorbents Corporation and its U.S. operating subsidiary, CytoSorbents Medical, Inc. entered into a Loan and Security Agreement with Bridge Bank, securing  an initial $5 million four-year term loan that was funded on June 30, 2016.  Interest-only monthly payments are due for the first year and then monthly principal and interest payments are due through the remainder of the term.  Prior to June 30, 2017, CytoSorbents has the ability, at its discretion, to receive an additional term loan of $5 million, provided certain conditions are met.  If this occurs, the period of interest-only payments on both term loans will be extended by six months through January 31, 2018, followed by 30 months of straight line amortization through the July 1, 2020 maturity date.  The company intends to use the proceeds from the loan to provide working capital to fund ongoing operations and to support clinical trials.

"This non-dilutive financing further strengthens our balance sheet at an attractive cost of capital.  Importantly, it will allow us to continue to pursue our aggressive growth strategy and clinical trial objectives as we increase product sales worldwide and move towards operating cash flow breakeven," stated Ms. Kathleen P. Bloch, CPA, MBA, Chief Financial Officer of CytoSorbents Corporation.  "We welcome this new relationship with Bridge Bank, a reputable and premier industry provider with a broad scope of financial services."

"We have been following CytoSorbents for several years now, and believe they possess a truly innovative technology in the life sciences space which could transform critical care medicine and cardiac surgery and save lives throughout the world," said Mr. Justin McDonie, Senior Vice President and Managing Director for Bridge Bank.  "We are pleased to provide this growth capital at this important juncture in CytoSorbents' evolution and look forward to helping make the company a success."

Bridge Bank is a division of Western Alliance Bank, the go-to-bank for business in its growing markets. Bridge Bank was founded in 2001 in Silicon Valley to offer a better way to bank for small-market and middle-market businesses from across many industries, as well as emerging technology companies and the private equity community.

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