Full Press Release Details
Medical Corporation Announces New Debt Facility with Perceptive Advisors
facility includes senior, secured term loans of up to $45 million
FL - November 9, 2023 - Apyx Medical Corporation (NASDAQ:APYX) (the "Company"), the manufacturer of a proprietary
helium plasma and radiofrequency technology marketed and sold as Renuvion , today announced that the Company and its subsidiaries
have entered into a new, five-year credit agreement with Perceptive Credit Holdings IV, LP ("Perceptive"), an affiliate of
Perceptive Advisors. The Perceptive Credit Agreement provides for a facility of up to $45 million in senior secured term loans, with
an initial loan of $37.5 million fully drawn at closing.
are excited to announce this new debt facility with Perceptive Advisors," said Charlie Goodwin, President and Chief Executive Officer.
"This new facility provides Apyx Medical with access to additional capital - and at more attractive terms overall -
than our prior agreement, significantly strengthening our balance sheet and enhancing our financial flexibility."
are excited to partner with Apyx Medical and believe that Renuvion will be a formidable product in the market as the company executes
on its strategy," said Sam Chawla, Portfolio Manager of Perceptive Advisors.
Perceptive credit facility matures on November 8, 2028 and includes an initial loan of $37.5 million and a delayed draw loan of $7.5
million. The initial loan of $37.5 million was fully funded on November 8, 2023, with approximately $11.0 million of the proceeds used
to satisfy all obligations under the Company's MidCap credit agreement, in addition to approximately $2.5 million of transaction
fees and other expenses incurred in connection with the Perceptive Credit Agreement. The delayed draw loan can be drawn at the Company's
option until December 31, 2024, upon satisfaction of certain conditions and covenants, including, but not limited to, the achievement
of a minimum revenue target.
initial loan and delayed draw loan bear interest at a floating rate based on one-month SOFR, subject to a floor of 5.0%, plus 7.0%. The
Perceptive Credit Agreement provides for 48 months of interest-only payments. Subsequent to the interest-only period, the outstanding
principal amount of the loans is repayable in monthly payments of 3.0% of the outstanding balance on the payment date. All remaining
outstanding principal, together with all accrued and unpaid interest, is due at maturity. The loans may be voluntarily prepaid in full,
or in part, at any time, subject to terms and conditions set forth in the Perceptive Credit Agreement. Additionally, the loans are subject
to mandatory prepayment obligations, pursuant to the terms of the Perceptive Credit Agreement. The obligations under the Perceptive credit
facility are secured by first priority liens on substantially all of the assets of the Company.
connection with the Company's initial loan under the Perceptive Credit Agreement, the Company issued Perceptive warrants to purchase
up to 1,250,000 shares of its common stock, par value $0.001, with an exercise price of $2.43 per share. Upon the issuance of the delayed
draw loan, if applicable, the Company will issue Perceptive warrants to purchase up to 250,000 shares of its common stock, par value
$0.001, with an exercise price of equal to the 10-day volume weighted average sale price from the preceding business day.
served as financial advisor to the Company on the transaction. Additional detail regarding the foregoing financing is set forth in the
Company's Current Report on Form 8-K, to be filed with the U.S. Securities and Exchange Commission.
Westwicke on behalf of Apyx Medical Corporation
Apyx Medical Corporation:
Medical Corporation is an advanced energy technology company with a passion for elevating people's lives through innovative products,
including its Helium Plasma Technology products marketed and sold as Renuvion in the cosmetic surgery market and J-Plasma in the
hospital surgical market. Renuvion and J-Plasma offer surgeons a unique ability to provide controlled heat to tissue to achieve their
desired results. The Company also leverages its deep expertise and decades of experience in unique waveforms through OEM agreements with
other medical device manufacturers. For further information about the Company and its products, please refer to the Apyx Medical Corporation
website at www.ApyxMedical.com.
Perceptive Advisors:
in 1999, Perceptive Advisors is a leading healthcare focused investment firm with approximately $9.5 billion of regulatory assets under
management. Since inception, Perceptive Advisors has focused on supporting progress in the life sciences industry by identifying opportunities
and directing financial resources toward the most promising technologies in modern healthcare. For more information about Perceptive,
visit www.perceptivelife.com.
Statement on Forward-Looking Statements:
matters discussed in this release and oral statements made from time to time by representatives of the Company may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although the Company
believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance
that its expectations will be achieved.
statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not
limited to, projections of net revenue, margins, expenses, net earnings, net earnings per share, or other financial items; projections
or assumptions concerning the possible receipt by the Company of any regulatory approvals from any government agency or instrumentality
including but not limited to the U.S. Food and Drug Administration (the "FDA"), supply chain disruptions, component shortages,
manufacturing disruptions or logistics challenges; or macroeconomic or geopolitical matters and the impact of those matters on the Company's
financial performance.
statements and information are subject to certain risks, trends and uncertainties that could cause actual results to differ materially
from those projected. Many of these factors are beyond the Company's ability to control or predict. Important factors that may
cause the Company's actual results to differ materially and that could impact the Company and the statements contained in this
release include but are not limited to risks, uncertainties and assumptions relating to the regulatory environment in which the Company
is subject to, including the Company's ability to gain requisite approvals for its products from the FDA and other governmental
and regulatory bodies, both domestically and internationally; the impact of the March 14, 2022 FDA Safety Communication on our business
and operations; sudden or extreme volatility in commodity prices and availability, including supply chain disruptions; changes in general
economic, business or demographic conditions or trends; changes in and effects of the geopolitical environment; liabilities and costs
which the Company may incur from pending or threatened litigations, claims, disputes or investigations; and other risks that are described
in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and the Company's other filings with
the Securities and Exchange Commission. For forward-looking statements in this release, the Company claims the protection of the safe
harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation
to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.