NEW YORK – Cardio Diagnostics announced on Thursday that it has entered into a securities purchase agreement for up to $11.2 million with an investment fund managed by Yorkville Advisors Global.
The company agreed to sell and issue convertible debentures to Yorkville in a gross aggregate principal amount of up to $11.2 million. The debentures are convertible into common shares of the company and are subject to various contingencies. The firm will receive 90 percent of the proceeds, Cardio Diagnostics said in a statement. A $5 million convertible debenture was entered into at the initial closing of the agreement, with Cardio Diagnostics receiving $4.5 million.
The Chicago-based firm, which went public via a merger with a special purpose acquisition company last year, said it plans to use the funding to accelerate the adoption of its PrecisionCHD and Epi+Gen CHD tests and pursue payor coverage. It will also use the proceeds to develop and launch additional tests for other cardiovascular diseases and associated comorbidities using its Integrated Epigenetic-Genetic Engine.
The firm's technology uses epigenetics and DNA methylation markers, along with machine learning tools, to determine a patient's risk of cardiovascular disease.
"This investment will help expand the reach of our cutting-edge tests, accelerating our mission to transform heart disease prevention and early detection," Cardio Diagnostics CEO Meesha Dogan said in a statement.
Northland Capital Markets acted as the sole placement agent on the deal.