EDAP TMS Secures Major Credit Facility for Focal One Growth

EDAP TMS Secures Major Credit Facility for Focal One

EDAP TMS SA (NASDAQ: EDAP), a global leader in robotic and energy-based therapeutic technologies, has secured a €36 million multi-tranche credit facility from the European Investment Bank (EIB). This funding represents a pivotal step in EDAP’s mission to drive growth and innovation in the field of robotic High-Intensity Focused Ultrasound (HIFU).

Utilization of Credit Facility for Expansion

The proceeds from this credit facility will significantly bolster EDAP's ongoing global efforts to expand its Focal One Robotic HIFU platform. By obtaining this funding, the company aims to accelerate the development of new clinical applications for its pioneering HIFU technology, thereby addressing rising patient demand for non-invasive treatment options.

Strategic Importance of the Funding

Ryan Rhodes, the Chief Executive Officer of EDAP TMS, emphasized the strategic relevance of this credit facility. The infusion of capital will enable EDAP to broaden its operational footprint, ensuring better access to effective treatment alternatives for various conditions, including cancer and benign disorders.

Industry Impact and Growth Opportunities

The collaboration with EIB showcases the commitment to innovation in medical technology focused on urological and gynecological therapies. The support from the EIB underscores the importance of advancing healthcare technologies aimed at improving patient outcomes through non-invasive procedures.

Details of the Credit Facility

The credit facility is structured into three tranches, combining a total loan of €36 million. The initial tranche of €11 million will be drawn in the upcoming quarters, offering a pathway for further tranches contingent upon meeting specific milestones. Tranche B amounts to €12 million at a 7% interest rate, while Tranche C is set at €13 million with a 6% interest rate. Each tranche has a maturity of five years post-disbursement.

EDAP's Innovative Therapies

EDAP TMS is well-recognized for developing and distributing minimally invasive medical devices powered by ultrasound technology. The Focal One system stands as a leading solution for prostate treatment, showcasing the company's focus on innovation and patient care. The technology’s precision and effectiveness are paving the way for it to serve multiple clinical indications beyond prostate cancer, enhancing treatment versatility for healthcare providers globally.

About the European Investment Bank

The EIB, as the financing arm of the European Union, plays a crucial role in supporting investments that drive technological innovation and market growth. Its partnership with EDAP TMS highlights the significance of investing in advanced medical technologies that promise substantial health benefits for patients worldwide.

Frequently Asked Questions

What is the purpose of the €36 million credit facility?

The funding will primarily support the global expansion of EDAP's Focal One Robotic HIFU technology and accelerate the development of new clinical indications.

When does EDAP expect to access the first tranche of funds?

EDAP anticipates accessing the first tranche of €11 million in the near future to enhance its operational capacity.

What are the interest rates associated with the credit facility?

The interest rates vary across the tranches, with Tranche A at 8%, Tranche B at 7%, and Tranche C at 6%.

How does the partnership with EIB benefit EDAP TMS?

The partnership allows EDAP TMS to leverage strategic growth capital to expand its innovative non-invasive treatment solutions in the healthcare market.

What is the significance of Focal One in the medical industry?

Focal One represents a significant advance in precise, non-invasive cancer therapies, making it a valuable tool for urologists and enhancing patient care options.

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