Medical technology company QT Vascular Ltd. on Tuesday announced that New York-based private alternative investment group GEM Global has agreed to provide it S$10 million ($7 million) in funding over the next 30 months.
GEM Global will route the investment through its GEM Global Yield Fund LLC SCS, QT Vascular said in a press statement.
QT Vascular, a developer of minimally invasive products for the treatment of complex vascular disease, can opt for an additional S$10 million commitment on terms (including quantum) identical to this agreement with a period of six months from the date of this agreement with GEM Global, the statement added.
The company has also agreed to issue 35 million warrants to GEM Global, each carrying the right to subscribe for one new ordinary share in the company. The warrants are expected to be issued within 45 days from the date of the agreement, and will be exercisable for a period of five years from the issue date at a fixed price of S$0.10 each.
The initial S$10 million will be in the form of a capital commitment which allows the company to drawdown funds during the 30-month term of the agreement by issuing ordinary shares to GEM Global and subject to share lending arrangement(s) being in placed, the statement explained.
QT Vascular will use the funds to repay existing borrowings that are due and improve its gearing ratio, improve its cash flow, increase production to support the increase in demand for the non-drug coated Chocolate® PTA, and for general corporate purposes such as the advancement of the drug coated Chocolate® program, the statement added.
“This agreement with GEM Global continues the momentum, started with winning the legal case with AngioScore Inc. last year, and then signing a distribution agreement with Medtronic last month. It gives QT Vascular some strong alternatives as it secures funding for continued growth and development of the Company over the next few years,” said Eitan Konstantino, PhD, CEO of QT Vascular.
“This capital commitment places QT Vascular in a commanding position to continue with its business and strategic partnership plans, improve the Group’s cash flow and increase production to support market demand for our products,” Konstantino added.
QT Vascular is based in Singapore and also has a US subsidiary, TriReme Medical LLC, based in Pleasanton, California. The company works closely with leading physicians and scientists from around the world to create differentiated devices that improve procedural and clinical outcomes.
GEM is a $3.4 billion investment group having completed 372 transactions in 70 countries.GEM’s funds include: CITIC-GEM Fund (matured in December 2015), Kinderhook Industries (GP and LP non-voting stakes), GEM Global Yield Fund LLC SCS, GEM India and VC Bank/GEM Mena Fund (GEM exited both its GP and LP stakes in these funds in 2015 and 2010 respectively).