San Diego-based Cytori Therapeutics Inc. announced it has entered into a four-year, $27 million term loan with Oxford Finance Corp. and Silicon Valley Bank.
Shares for the publicly traded company rose 5 cents in the day following the news, closing at $2.35 on July 1. Cytori, a regenerative medicine company that develops products for the cosmetic and reconstructive surgery markets, has a market capitalization of $157.9 million.
Proceeds from the loan will be used to prepay the company’s existing loan with GE Capital, Oxford Finance Corp. and Silicon Valley Bank.
“We worked closely with our lenders and were able to tailor a new loan that meets our specific needs,” Mark Saad, chief financial officer of Cytori Therapeutics, said in a statement. “The loan provides an additional $8 million to help fund our ongoing operations, including clinical trial activities and reduces our near-term cash obligations by approximately $8 million to coincide with anticipated second half revenue growth.”
— SDBJ Staff Report