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OncoCyte Amends Loan Agreement With New $3M Credit Facility

NEW YORK – OncoCyte said in a regulatory filing on Monday that it has entered into an amended agreement with Silicon Valley Bank for a new $3 million secured credit facility, a portion of which has been used to repay the remaining balance of approximately $400,000 on outstanding loans with the same lender plus a final payment of $116,000 under the two parties' February 2017 loan agreement. 

OncoCyte's credit line under the new amended agreement may be further increased by an additional $2 million if the company meets certain conditions including successfully obtaining at least $20 million of additional equity capital, and receiving a positive final coverage determination from the Centers for Medicare and Medicaid Services for its newly acquired Razor lung cancer test at a specified minimum price point. 

In its document filed with the US Securities and Exchange Commission OncoCyte disclosed that upon the new $3 million credit facility becoming available on October 17, it issued a common stock purchase warrant to Silicon Valley Bank, entitling it to purchase 98,574 shares of OncoCyte common stock at the initial warrant price of $1.69 per share through October 17, 2029. 

According to OncoCyte, the number of shares of common stock issuable upon the exercise of the warrant will increase if it draws additional funds under the potential $2 million extension.