FARMINGTON - Horizon Technology (NASDAQ:HRZN) Finance Corporation (NASDAQ: HRZN), a specialty finance firm, has provided a $35 million venture loan facility to GT Medical Technologies, Inc. to support the company's growth and working capital. GT MedTech is known for its innovative GammaTile® therapy, a treatment for brain tumors that has been cleared by the FDA.
The initial funding of $15 million aims to bolster GT MedTech's strategic commercial and market expansion. GammaTile® therapy utilizes a surgically targeted radiation approach that delivers radiation directly to the tumor cavity using a bioresorbable collagen tile embedded with Cesium-131 isotope seeds. This method reduces the risk of tumor recurrence while minimizing exposure to healthy tissue.
GT Medical Technologies is supported by investors such as MVM Partners, Glide Healthcare Partners, MedTech Venture Partners, and BlueStone Venture Partners. The company's CEO, Per Langoe, expressed gratitude for Horizon's support, emphasizing the potential of GammaTile® to improve patient outcomes by providing targeted radiation immediately after tumor removal.
Gerald A. Michaud, President of Horizon, highlighted the transformative potential of GammaTile® in the healthcare ecosystem, noting its cost-effective profile for hospitals. The partnership is expected to extend the reach of the GammaTile® solution to more patients.
Horizon Technology Finance Corporation, managed by an affiliate of Monroe Capital (NASDAQ:MRCC), provides secured loans to venture capital-backed companies in various industries, including technology and healthcare. Monroe Capital oversees $19.5 billion in private credit markets.
GT Medical Technologies focuses on elevating the standard of care for brain tumor patients. Since its full market release in the United States in March 2020, GammaTile® has been adopted by over 100 leading institutions.
This financial move is based on a press release statement, and Horizon has made no further comments on the future performance or condition of this investment.
In other recent news, Horizon Technology Finance Corporation reported mixed results for its Q2 2024 financial performance. Despite a challenging venture lending market, the company managed to fund four new debt investments, totaling $11 million, and reported an investment income of $26 million for the quarter. The company's portfolio size, however, decreased to $647 million due to prepayments and fair value adjustments.
In further developments, Horizon Technology Finance has provided a $35 million venture loan facility to Vesta Healthcare, a company offering tech-enabled clinical services for chronic condition management. The loan aims to support Vesta Healthcare's growth and working capital needs. This move has been lauded by Gerald A. Michaud, President of Horizon, and Randy Klein, CEO of Vesta Healthcare.
Horizon Technology Finance, managed by an affiliate of Monroe Capital, ended the quarter with $150 million in available liquidity following the establishment of a new $100 million credit facility and amendments to existing credit facilities. This has resulted in a debt-to-equity ratio of 1.36:1 for Horizon. The company anticipates portfolio growth in the coming quarters, driven by increased market activity.
InvestingPro Insights
Horizon Technology Finance Corporation (NASDAQ: HRZN) has recently made a significant investment in GT Medical Technologies, showcasing its commitment to innovative healthcare solutions. As investors consider the implications of this venture, it's essential to look at Horizon's financial health and market position to understand the potential risks and rewards associated with the company.
An important metric for shareholders is Horizon's dividend yield, which stands at an attractive 13.48%, reflecting the company's history of consistent dividend payments over the past 15 years. This commitment to returning value to shareholders is a reassuring sign in the volatile market. For those interested in dividend stocks, Horizon's track record could be a compelling reason to consider the stock, especially given that the company has maintained these payments even in challenging times. This is a significant InvestingPro Tip, as it highlights Horizon's focus on shareholder returns.
However, challenges are present as well. Horizon's current valuation implies a poor free cash flow yield, which could signal that the company's stock is overvalued relative to the cash it generates. This is a critical point for investors to consider, as it may affect the company's ability to sustain its dividend payments in the long term. Another InvestingPro Tip points out that analysts have recently revised their earnings downwards for the upcoming period, hinting at potential headwinds for Horizon's financial performance.
From a data perspective, Horizon's market capitalization stands at $395.94 million, with a negative P/E ratio of -16.01, reflecting the market's concerns about its profitability, as the company has not been profitable over the last twelve months. Despite these concerns, Horizon's liquid assets exceed its short-term obligations, which suggests that the company maintains a solid liquidity position to meet its immediate financial needs.
Investors can find additional InvestingPro Tips for Horizon Technology Finance Corporation, which can provide deeper insights into the company's financial health and market potential. For instance, there are currently six more tips available at InvestingPro, which can help investors make more informed decisions.
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