Amedica Secures $26 Million Financing

Salt Lake City, Utah-based Amedica Corporation, a biomaterial company that uses silicon nitride technology to develop medical devices, has secured up to $26 million in additional funding. The funding consists of $20 million debt financing with Hercules Technology Growth Capital, Inc. and a private placement to MG Partners II Ltd. of 6% Senior Convertible Notes in an aggregate principal amount of up to $6 million.

According to the press release, approximately $15.2 million of the proceeds from the financing will be used to retire Amedica’s senior secured credit facility with General Electric Capital Corporation. The balance will be used to further the commercialization and development of Amedica’s silicon nitride spinal fusion products.

Amedica CFO Jay Moyes said that “the repayment of the GE Credit Facility will eliminate approximately $3.6 million of remaining scheduled principal payments in 2014, which would have otherwise been due under the GE Credit Facility. This will enable the company to now expend those resources on the commercialization of its products.”

President and CEO Eric Olson said, “Refinancing the GE Credit Facility and securing the additional working capital puts us in a stronger financial position to further our company objectives. We are pleased to have the support of such reputable financial institutions as Hercules Technology Growth Capital and Magna in maximizing the potential of our silicon nitride biomaterial.”