Bacterin International Holdings (AMEX:BONE) said Tuesday that it has secured an accounts receivable credit facility with mid-market lenders Midcap Financial and Silicon Valley Bank.
The developer of bone graft material and antimicrobial coatings for
medical applications said the revolving loan facility allows the company
to borrow up to $5 million through January 1, 2015.
The facility allows borrowings based on a pre-determined formula of
up to 80 percent of Bacterin's eligible accounts receivable, as defined
in the credit and security agreement.
"Due to the high working capital needs of our business associated
with the necessity for our inventory to be consigned to our hospital
accounts, the accounts receivable facility is an efficient way for
Bacterin to access cash, from time to time, without diluting equity,"
said chairman and CEO, Guy Cook.
"Our strong relationships with Silicon Valley Bank and Midcap
Financial helped us to secure this non-dilutive financing option, as we
prepare for the next stage of growth at Bacterin International."
In late March, the company said that fourth quarter revenue increased
sharply, while full year revenue almost doubled to record levels, with
the company reaffirming its 2012 sales forecast.
For the quarter that ended December 31, revenue increased 72 percent
to $9.1 million, compared to $5.3 million in the same period a year ago.
The increase was primarily attributed to continued market
penetration, the company said, combined with the continued expansion of
its direct sales force.
Bacterin's technology optimizes the growth factors in human
allografts to promote bone, subchondral repair and dermal growth. These
products are used in a variety of applications including enhancing
fusion in spine surgery, relief of back pain, bone growth in foot and
ankle surgery, cranial healing following neurosurgery and subchondral
repair in knee and other joint surgeries.
In the fourth quarter, two-year study results showed the company's
flagship product, OsteoSponge, was equivalent to rhBMP-2 in spinal
fusion, an important feature at a time when surgeons are moving away
from rhBMP-2 because of concerns over complications, the company said.
OsteoSponge had already been used in 100,000 procedures prior to the
release of the data, and the company expects this study to help further
increase its market share.
In the fourth quarter, the company also said it "materially
increased" the number of medical facilities in which its products are
used, and began the doubling of operating capacity through the
installation of new equipment.
Hospital accounts increased to 616 facilities, an increase of 27 percent over 484 facilities in the fourth quarter of 2010.
The company's medical device division also develops and licenses bioactive coatings for various medical device applications.