Mauna Kea Technologies secures approval to access €6M second tranche of loan agreement with the European Investment Bank (EIB)
Mauna Kea Technologies announced it has obtained confirmation from the EIB of its consent to disburse the second tranche of their €22.5 million loan for an amount of €6m with revised terms.
The original loan agreement was signed in July 2019 and included an initial tranche of €11.5 million. The agreement also includes the ability to access a third tranche of €5 million at a later date subject to the achievement of certain milestones. The drawdown of the second tranche of the loan agreement is subject to completing the legal documents, including additional security documents, and is supplemented by an agreement to issue 500,000 share warrants to the EIB, representing approximately 1.6% of the current share capital outstanding. This tranche will bear an annual interest of 3% and a 4% capitalized interest payable in 5 years with the principal.
“We are very pleased to announce the approval to access the second tranche of our financing agreement with the European Investment Bank,” said Robert L. Gershon, Chief Executive Officer of Mauna Kea Technologies. “The EIB has been an important financial partner for Mauna Kea since June 2019 and their continued support reflects their belief that Mauna Kea’s focus on strong innovation and development of unique medical device technologies to improve outcomes for patients is aligned with the key objectives of the EFSI, also formerly called "Juncker Plan." Accessing the next €6 million of our loan agreement will improve our financial visibility and will support the execution of our strategic growth initiatives.”