Acutus Medical has announced the completion of the first of two closings for its previously disclosed sale of the company’s left-heart access portfolio to Medtronic.
Additionally, Acutus Medical has also announced entry into a new longer-term credit facility with Deerfield Management Company to refinance its existing debt. The company expects these transactions to fund its long-term growth objectives.
“We continue to advance our strategic initiatives to drive adoption of our differentiated mapping and therapy platform as well as improve our financial and operational performance,” said David Roman, interim CEO and CFO of Acutus Medical. “The first closing of the sale of our left-heart access portfolio as well as the refinancing of our debt structurally transforms the Company’s financial position and enables us to further invest in critical product and market development programs. We are pleased with the progress in our business and the execution of our focused operating model and will provide further updates on our second quarter earnings call in August.”
On 30 June Acutus completed the first closing of its previously announced sale of the Company’s left-heart access portfolio, which includes the AcQCross line of sheath-compatible septal crossing devices, the AcQGuide Mini integrated crossing device and sheath, the AcQGuide Flex steerable introducer with integrated transseptal dilator and needle, and the AcQGuide Vue steerable sheath to Medtronic.
Under the terms of the agreement, at the first closing, Medtronic paid cash consideration of US$50 million and acquired from the company, among other things, intellectual property rights to the left-heart access portfolio and certain equipment used in the manufacturing of these products.
Acutus will also be eligible to receive contingent consideration payments of up to US$37 million associated with certain manufacturing and regulatory milestones. In addition to these payments, Acutus is eligible to receive up to four years of revenue-based earnouts. Acutus will continue to commercialise the left-heart access portfolio until the company reaches certain milestones to become a supplier to Medtronic.
In addition to the first closing of the left-heart access portfolio sale, Acutus has closed a new debt facility with investment funds affiliated with Deerfield Management for US$35 million in aggregate principal with a maturity date of 30 June 2027 as well as amortisation payments becoming due 36, 48 and 60 months following the closing of the loan.
In connection with the refinancing, Acutus has issued warrants to purchase an aggregate of 3,779,018 shares of common stock to Deerfield at a price of US$1.1114 per share, subject to certain adjustments. In conjunction with this new facility, the company settled outstanding debt obligations under its 2019 credit agreement.