Nyxoah signs a €37.5m loan with the European Investment Bank
Nyxoah SA (Euronext Brussels/Nasdaq: NYXH), located in Mont-Saint-Guibert, Belgium announced that it has signed a €37.5m loan facility agreement with the European Investment Bank (“EIB”). The agreement is backed by the European Commission’s InvestEU program. Nyxoah plans to use the funding for research and development, and for scaling-up its manufacturing capacity to meet demand in Europe and the U.S.
Nyxoah is a medical technology company focused on the development and commercialization of innovative solutions to treat Obstructive Sleep Apnea (“OSA”). The product under the brand Genio system consists of a neurostimulator, an activation chip, a charging unit and adhesive patches. The tiny neurostimulator is implanted under the chin. Its electrodes are put in contact with both branches of the hypoglossal nerve resulting in bilateral stimulation of the nerve.
The €37.5 million facility is divided into three tranches: €10 million for the first tranche (“Tranche A”), €13.75 million for the second tranche (“Tranche B”) and €13.75 million for the third tranche (“Tranche C”). Disbursement under the various tranches is subject to certain conditions. Tranche A carries an annual 5% cash and 5% capitalized interest rate, and features a five-year bullet repayment schedule. The various tranches do not contain revenue or liquidity covenants.
EIB Vice-President Robert de Groot said: “Belgium stands at the forefront of innovation in the area of life sciences and med tech. As the EIB, we take pride in supporting this thriving industry and fostering growth. Nyxoah, with its groundbreaking approach, is making a valuable contribution. We are eager to see the company progressing, benefitting patients worldwide.”
Olivier Taelman, CEO of Nyxoah, commented: “We are excited and grateful for the support and confidence in our cutting-edge technology shown by the European Investment Bank. This loan follows our recent successful equity offering where we raised €48.5m, providing us a combined access to over €80 million in growth capital. This will aid in the commercialization of Genio in Europe and in the U.S., if approved, while helping increase production capacity and sustain innovation.”
