Biotricity completes $ 12 million non-dilutive debt financing

Biotricity completes $ 12 million non-dilutive debt financing

REDWOOD CITY, CA / ACCESSWIRE / December 27, 2021 /Biotricity Inc. (NASDAQ:BTCY) a modern medical technology company delivering innovative, remote biometric monitoring solutions, today announced the successful completion of a $12 million non-convertible debt financing.

5-year term deal strengthens balance sheet, positions company for multiple new product launches in 2022

Highlights

  • Dr. Waqaas Al-Siddiq, Biotricity Founder and CEO commented, “This capital infusion represents the strength of our recurring revenue business model and validates the confidence in our plan with lenders. It greatly strengthens our capital position in a manner that is non-dilutive to our equity shareholders and eliminates a current debt instrument that carried less favorable terms. This also follows our August equity raise that helped facilitate our Nasdaq listing. As a supplement to our existing capital reserves, this augments our healthy capital base to finance inventory and support our Annual Recurring Revenues (ARR).

  • The $12 million capital infusion terms provided by SWK Funding LLC (NASDAQ:SWKH), an investor in healthcare and life science companies, include two years, interest-only period and a 40% principal balloon payment at the end of its five year term. The intended use of proceeds is to replace existing less favorable debt that is coming due, support the Company’s inventory, and finance annual recurring revenue (ARR) subscriptions.

In his December 7 Letter to Shareholders, Dr. Al-Siddiq discussed his product roadmap for a full pipeline of revolutionary remote cardiac monitoring devices slated for commercialization in 2022.

“Using debt rather than equity financing allows us to avoid shareholder dilution at this time.” Dr. Waqaas added. “We’re excited to have the opportunity to aggressively accelerate the execution of our business plan.”

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Winston Black, CEO of SWK stated, “We strongly believe in the hard and important work Biotricity is doing to revolutionize cardiac health monitoring for the benefit of patients and healthcare practitioners. We are confident that the Company will successfully meet its 2022 commercialization and sales goals on its way to scaling to higher levels of profitability in the years ahead.”

Summary Transaction Terms Net proceeds of $10.18 million were received by the Company, after giving effect to the payment of $274,000 in origination and the repayment of approximately $1.57 million in prior Company indebtedness. In addition, the Company issued the Lender 57,536 warrants convertible into one share of common stock each, with a 7-year term and an exercise price of $6.26.

The Term Loan will accrue interest at a margin of 10.5% plus the greater of 3-month LIBOR or a 1% LIBOR floor, or LIBOR replacement rate, as applicable. The Term Loan will have an initial interest-only period of 2 years, potentially extendible to 3 years, prior to beginning to amortize, after taking effect of a 40% balloon payment at maturity, and will be subject to customary covenants and reporting obligations on the part of the Company.

Full details of the transaction are available in the Company’s report on Form 8-K at www.sec.gov. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor there any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Bioheart does not diagnose, treat, or repair heart disease. Bioheart is not intended to be a diagnostic tool, or for clinical use, or clinical interpretation, and is meant to be a lifestyle and wellness solution for individuals. If users of the Bioheart are concerned about the data obtained from the device, they should consult a medical professional directly for further advice. Biotricity disclaims any representation made, whether explicitly or implicitly, which would suggest the accuracy of the data obtained is suitable for clinical interpretation. Bioheart as described herein, and subsequent versions, may or may not be the same as advertised and may or may not differ in features and functionality. Any statements made herein in relation to Bioheart, its features, functionality are based on design and concepts that the company believe are achievable, but the functionality may be different.

Biotricity is reforming the healthcare market by bridging the gap in remote monitoring and chronic care management. Doctors and patients trust Biotricity’s unparalleled standard for preventive & personal care, including diagnostic and post-diagnostic solutions for chronic conditions. The company develops comprehensive remote health monitoring solutions for the medical and consumer markets. To learn more, visit www.biotricity.com. About Biotricity Inc.