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HTG Molecular Takes Out $5M Term Loan

NEW YORK (GenomeWeb) – Tuscon, Arizona-based HTG Molecular has borrowed $5 million in a term loan from Oxford Finance and Silicon Valley Bank under a previous agreement, according to a document filed yesterday with the US Securities and Exchange Commission.

In a Form 8-K, HTG Molecular disclosed the Term B Loan, which bears interest at a fixed rate of 8.75 percent and is to be repaid monthly over the course of 30 months beginning April 1. The firm will also pay a final fee of $237,500 on September 1, 2018. 

The firm did not indicate how it planned to use the funds.

In connection with the loan, HTG Molecular issued Oxford a warrant to purchase 45,307 shares of common stock at an exercise price of $2.759 per share.

The loan is the second part of an agreement signed in August 2014, providing for two separate term loans totaling $16 million. HTG Molecular borrowed $11 million immediately and is now taking out the remaining amount available under the agreement. 

The molecular diagnostics firm went public in May 2015, raising net proceeds of more than $44.4 million.