Biotricity closes $ 12 million non-dilutive debt financing


Capital injection to finance inventories and annual subscriptions of recurring income replaces expiring debt with more favorable terms

The 5-year term agreement strengthens the balance sheet and positions the company for several new product launches in 2022

REDWOOD CITY, CA / ACCESSWIRE / December 27, 2021 / Biotricity (NASDAQ: BTCY), a modern medical technology company providing innovative remote biometric monitoring solutions, today announced the successful completion of a $ 12 million non-convertible debt financing.

The $ 12 million capital injection terms provided by SWK Funding LLC (NASDAQ: SWKH), an investor in healthcare and life sciences companies, include two years, an interest-only period, and a lump sum payment of 40% of the capital at the end of its five-year term. The intended use of the proceeds is to replace existing less favorable debt that is maturing, support the company’s inventory, and fund annual recurring revenue (ARR) subscriptions.

Dr Waqaas Al-Siddiq, Founder and CEO of Biotricity, commented, “This capital injection represents the strength of our recurring revenue business model and validates confidence in our plan with lenders. It considerably strengthens our capital position in a non-dilutive manner. to our shareholders and eliminates a current debt instrument that had less favorable terms. This also follows our capital increase in August which helped facilitate our listing on the Nasdaq. Complementing our existing capital reserves, this increases our healthy capital base to fund inventory and support our annual recurring income (ARR).

“Using debt financing rather than equity allows us to avoid shareholder dilution at this time.” Dr Waqaas added. “We are delighted to have the opportunity to aggressively accelerate the execution of our business plan.”

In his December 7 letter to shareholders, Dr Al-Siddiq discussed his roadmap for a comprehensive pipeline of revolutionary remote heart monitoring devices slated for commercialization in 2022.

Winston Black, CEO of SWK, said: “We strongly believe in the hard and important work that Biotricity is doing to revolutionize heart health monitoring for the benefit of patients and healthcare professionals. We are confident that the company will successfully meet its marketing and sales targets in 2022. on track to achieve higher levels of profitability in the years to come. “

Summary of trading conditions

Net proceeds of $ 10.18 million were received by the Company, taking into account the original payment of $ 274,000 and the repayment of approximately $ 1.57 million of the Company’s prior indebtedness. In addition, the Company issued to the lender 57,536 warrants convertible into one common share each, with a term of 7 years and an exercise price of $ 6.26.

The term loan will bear interest at a margin of 10.5% greater than the greater of the 3-month LIBOR or a LIBOR floor of 1%, or the replacement rate of LIBOR, as the case may be.

The term loan will have an initial interest-only period of 2 years, potentially extendable to 3 years, prior to the start of amortization, after a 40% lump sum payment takes effect at maturity, and will be subject to the commitments and obligations on the part of the Company.

Full details of the transaction are available in the Company’s report on Form 8-K at www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor any sale of such securities in any jurisdiction in which such an offer, solicitation or sale would be illegal prior to registration or qualification in under the securities laws of such jurisdiction.

About Biotricity Inc.

Biotricity is reforming the healthcare market by bridging the gap between remote monitoring and chronic care management. Physicians and patients trust Biotricity’s unmatched standard for preventive and personal care, including diagnostic and post-diagnostic solutions for chronic disease. The company develops comprehensive remote health monitoring solutions for the medical and consumer markets. To learn more, visit www.biotricity.com.

Bioheart does not diagnose, treat, or repair heart disease. Bioheart is not intended to be a diagnostic tool, or for clinical use, or clinical interpretation, and is intended to be a lifestyle and wellness solution for individuals. If users of the Bioheart are concerned about the data obtained from the device, they should consult a healthcare practitioner directly for further advice. Biotricity disclaims any representation made, explicitly or implicitly, which would suggest that the accuracy of the data obtained lends itself to clinical interpretation.

Bioheart as described here, and later versions, may or may not be the same as advertised and may or may not differ in features and functionality. All statements made here about Bioheart, its specifications, its functionality are based on the design and concepts that the company believes are feasible, but the functionality may be different.

The Bioheart name, logo and taglines are trademarks of Biotricity Inc. US and international patents pending. Bioheart does not require a prescription.

About SWK Holdings:

SWK Holdings Corporation is a specialty finance company focused on the global healthcare industry. SWK partners with ethical product distributors and royalty holders to provide flexible financing solutions at an attractive cost of capital to create long-term value for SWK’s business partners and investors. SWK believes that its funding structures provide an optimal partnership for companies, institutions and inventors seeking capital for expansion or capital and succession planning by allowing its partners to monetize the flows. future cash flow with minimal dilution of their holdings. SWK also owns Enteris Biopharma, whose core drug delivery technology Peptelligence â„¢ creates oral small molecule formulations based on Class II, III and IV peptides and BCS. With Enteris, SWK has the opportunity to grow its specialty finance business by actively building a wholly owned portfolio of milestones and royalties through licensing activities. Additional information on the life science finance market is available on the Company’s website at www.swkhold.com.

Important Cautions Regarding Forward-Looking Statements

All statements in this press release that do not describe historical facts may constitute forward-looking statements. Forward-looking statements, which involve assumptions and describe our future plans, strategies and expectations, are generally identifiable by the use of the words “may”, “should”, “would”, “will”, “could”, “,” “Expect”, “anticipate”, “estimate”, “believe”, “intend”, “seek”, “project” or “objective” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements may include, without limitation, statements regarding (i) management’s plans, objectives and goals for future operations, including plans, objectives or goals relating to the design, development and marketing of Bioflux or any other Company project products or services, (ii) a projection of income (including income / loss), profits (including profits / losses) per share, capital expenditure, dividends, capital structure or other financial elements, (iii) the future financial performance of the Company, (iv) the regulatory regime in which the Company operates or intends to operate and (v) the assumptions under – adjacent or linked to any declaration described in points (i), (ii), (iii) or (iv) above. These forward-looking statements are not intended to predict or guarantee actual results, performance, events or circumstances and may not be made because they are based on current projections, plans, objectives, beliefs, expectations, estimates and assumptions. of the Company and are subject to a number of risks and uncertainties and other influences, over which the Company has no control. The actual results and timing of certain events and circumstances may differ materially from those described in forward-looking statements due to these risks and uncertainties. Factors that may influence or contribute to the inaccuracy of forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation, the inability of the Company to obtain additional funding, the length of time and significant resources associated with the development of its products and the resulting insufficient cash flow and resulting illiquidity, the Company’s inability to develop its business, significant government regulation of medical devices and healthcare sector, lack of product diversification, existing or increased competition, arbitration and litigation results, equity volatility and illiquidity, and the Company’s failure to implement plans or the Company’s business strategies. These and other factors are identified and described in more detail in the Company’s filings with the SEC. There can be no assurance that the Company will ever become profitable. During the quarter ended June 30, 2020, the Company incurred a net loss attributable to common shareholders of $ 3.4 million. The Company assumes no obligation to update any forward-looking statements to reflect any event or circumstance that may arise after the date of this press release.

CONTACTS

Media

Bospar
[email protected]

Investor Relations

Biotricity Investor Relations
[email protected]
1.800.951.3348

Marc Forney
MKR Group, Inc.
12198, boulevard Ventura, office 200
Los Angeles, California 91604
[email protected]

THE SOURCE: Biotricité inc.

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https://www.accesswire.com/679576/Biotricity-Completes-12-Million-Non-Dilutive-Debt-Financing


Carol M. Barragan