Spectral receives $3M (U.S.) tranche from Vantive

Executive Summary

• Spectral Medical Inc. has received a $3 million (U.S.) advance (Tranche B) from Vantive US Healthcare LLC under a previously disclosed senior secured promissory note.
• This funding brings the total cumulative draw on the facility to $7 million (U.S.), combining with the initial $4 million (U.S.) Tranche A advance.
• The capital is designated to support regulatory preparations for FDA submission, commercialization activities for Toraymyxin (PMX), and general working capital, with management stating no additional funding beyond the fully drawn note is anticipated.

Key Details

• Transaction Structure: Tranche B advance under a senior secured promissory note.
• Counterparty: Vantive US Healthcare LLC.
• Amount Received: $3,000,000 (U.S.).
• Cumulative Draw: $7,000,000 (U.S.) total, consisting of $4 million (U.S.) from Tranche A and $3 million (U.S.) from Tranche B.
• Facility Limits: Vantive may advance up to $10 million (U.S.) in up to four separate tranches.
• Use of Proceeds: Continuing regulatory and commercialization preparations, United States Food and Drug Administration (FDA) submission support, PMX commercialization, and general working capital requirements.
• Strategic Impact: Management states the company does not anticipate requiring additional funding beyond the fully drawn senior secured promissory note to meet upcoming key milestones.
• Product Context: Toraymyxin (PMX) is a therapeutic hemoperfusion device for septic shock; it is approved in Japan and Europe, licensed by Health Canada, and has over 360,000 units sold worldwide. The company is currently conducting the Tigris trial, a Phase 3 confirmatory study.

Notable Quotes

• "We appreciate Vantive's continued support and are pleased to have closed the Tranche B advance. This non-dilutive capital enhances our liquidity and provides additional flexibility as we execute on our regulatory pathway and commercialization plans. With this funding in place, we remain focused on operational priorities." — Chris Seto, Chief Executive Officer