DENVER - TriSalus Life Sciences Inc. (NASDAQ: TLSI), an oncology-focused medical technology company, announced a debt financing agreement with healthcare investment firm OrbiMed. The deal provides TriSalus with up to $50 million to support strategic growth and extend its cash runway through 2025.
The company, known for its Pressure Enabled Drug Delivery (PEDD) technology, secured $25 million at closing and can access up to an additional $25 million based on achieving certain revenue thresholds. The five-year credit agreement matures in April 2029, and as part of the transaction, TriSalus issued OrbiMed a warrant to purchase 130,805 shares of common stock at $9.5562 per share.
CEO Mary Szela expressed enthusiasm for the partnership with OrbiMed, emphasizing the capital's role in advancing the company's PEDD technology and pipeline, with a goal of reaching break-even EBITDA for its TriNav business by 2025. Matthew Rizzo, General Partner of OrbiMed, echoed this sentiment, highlighting the support for TriSalus's strategic and commercial expansion.
TriSalus's PEDD technology is designed to improve the delivery of therapeutics to liver and pancreatic tumors, addressing inherent anatomical challenges. The company's investigational immunotherapy, nelitolimod, aims to treat the immunosuppressive tumor environment, potentially enhancing the effectiveness of current treatments. TriSalus is partnered with leading cancer centers and leverages its technology to improve patient outcomes.
The transaction was facilitated by Cantor Fitzgerald & Co. as the sole placement agent and Cooley LLP as legal counsel for TriSalus. OrbiMed was advised by Covington & Burling LLP.
This financing move is expected to provide TriSalus with the necessary resources to execute its strategic initiatives and reduce the need for near-term equity financing. The information is based on a press release statement.
InvestingPro Insights
TriSalus Life Sciences Inc. has recently entered into a significant debt financing agreement, which is a pivotal step for the company's growth and development. In light of this development, let's delve into some key metrics and tips from InvestingPro that could provide investors with a clearer picture of TriSalus's financial health and market performance.
InvestingPro Data:
- Market Cap (Adjusted): $249.12M USD
- Revenue Growth (Quarterly) for Q1 2023: 77.34%
- Price, Previous Close: $9.36 USD
InvestingPro Tips:
1. TriSalus has experienced a large price uptick over the last six months, with a 117.79% increase in the 6-month price total return, indicating a significant rise in investor confidence and market valuation.
2. Despite a strong revenue growth reported in the recent quarter, analysts from InvestingPro do not anticipate the company will be profitable this year, which is a crucial consideration for investors looking at the long-term financial stability of the company.
Investors interested in a deeper analysis of TriSalus Life Sciences Inc. can find additional InvestingPro Tips that could further inform their investment decisions. Currently, there are 6 more tips available on InvestingPro. To access these insights and enhance your investment strategy, visit https://www.investing.com/pro/TLSI and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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