Shares of Clearpoint Neuro Inc (NASDAQ: CLPT) are rising on Wednesday after the company announced an amendment to its January 2020 secured convertible note financing agreement with Petrichor Healthcare Capital Management and PTC Therapeutics.
ClearPoint said the amendment, which closed today, provides an additional $7.5 million in strategic investment from Petrichor and improves terms relative to the original conversion price and interest rate.
The $7.5 million note is an increase from the $5 million anticipated in the original agreement.
The interest rate on the note comprises cash interest, payable quarterly, 2% per annum; and payment-in-kind interest of 5% per annum.
“We have the vision of becoming the premier navigation and delivery partner for our Biologics and Drug Delivery customers, and we believe this funding will bolster our balance sheet ahead of a pivotal year,” commented Joe Burnett, President and CEO at ClearPoint Neuro.
“This important capital increase enables us to seize the opportunities ahead by accelerating our product development efforts, expanding our global footprint, and adding to our pre-clinical capabilities to start these relationships well before the clinical trial stage,” added Burnett.
ClearPoint shares rose as much as 19% premarket. However, they are now trading just 3.73% higher than the previous day’s close at $14.88.