EDEN PRAIRIE, Minn., Dec. 9, 2015 (GLOBE NEWSWIRE) -- Sunshine Heart, Inc. (NASDAQ:SSH) announced today it has amended its debt agreement with Silicon Valley Bank to modify the requirement that the Company raise $20.0 million by March 31, 2016.
'It is a pleasure to continue to work with Silicon Valley Bank which is well established in the healthcare sector as a leading financial partner to emerging companies. We are pleased with the outcome and look forward to continue to strengthen our partnership with Silicon Valley Bank,' commented John Erb, Chairman and Interim Chief Executive Officer of Sunshine Heart.
On December 8, 2015, the Company entered into an agreement with Silicon Valley Bank to modify the loan and security agreement that was signed on February 18, 2015, which had required that the Company complete an equity financing resulting in unencumbered net cash proceeds of at least $20.0 million by March 31, 2016. The amendment eliminates this requirement, replaces it with a requirement that the Company maintain eight months of cash and cash equivalents on its balance sheet and also increases the fees the Company will pay Silicon Valley Bank in connection with prepayments.
'We're pleased to continue our partnership with Sunshine Heart as they further develop their C-Pulse system,' said Ben Johnson, Managing Director of Silicon Valley Bank. 'This modification illustrates Silicon Valley Bank's commitment to increasing our clients' probability of success, as well as our ongoing commitment to support the global life science community.'
Additional details regarding the amendment to the loan agreement are included in a Current Report on Form 8-K filed on December 9, 2015 by Sunshine Heart with the Securities and Exchange Commission.
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SHC Price at posting:
2.5¢ Sentiment: Buy Disclosure: Held
