Cytori borrows $20M from group of lenders
Cytori Therapeutics Inc., which makes products used in adult stem cell harvesting and research, said Monday it has secured a $20 million loan facility, which it will use to support marketing and drug development.
Together with a recent $30 million capital raise, Cytori said the financing will fund its operations into 2012. The three-year loan facility, which carries a 9.9 percent interest rate, is being funded by GE Capital, Healthcare Financial Services, Oxford Finance Corp., and Silicon Valley Bank.
Cytori said it will use $4.4 million of the proceeds to refinance a 2008 loan from GE Capital, Healthcare Financial Services and Silicon Valley Bank. It will also issue warrants that will allow the lenders to buy 101,266 shares of Cytori stock at $3.95 each.
In afternoon trading, Cytori stock gained 76 cents, or 19 percent, to $4.80.