- Allegra Orthopaedics (AMT) has secured a loan facility of up to $2 million to progress the company’s Bone Substitute Project
- The orthopaedic solutions provider is developing a composite biocompatible ceramic material known as Sr-HT-Gahnite
- Substantial shareholder Robinwood Investments will loan the funds, which may be drawn down in tranches of $300,000 over a two-year term
- The loan enables AMT to pursue commercialisation, including gaining regulatory approvals from the U.S. Federal Drug Administration and Australia’s Therapeutic Goods Administration
- Allegra Orthopaedics shares last traded at 32 cents each
Allegra Orthopaedics (AMT) has secured a loan facility of up to $2 million to progress the company’s Bone Substitute Project.
The orthopaedic solutions provider is developing a composite biocompatible ceramic material known as Sr-HT-Gahnite.
Allegra’s substantial shareholder Robinwood Investments will loan the funds, which may be progressively drawn down in tranches of $300,000, as required, over a two-year term.
This will enable Allegra to pursue commercialisation, including gaining regulatory approvals from both the Federal Drug Administration in the U.S. and Australia’s Therapeutic Goods Administration
The loan carries a 13 per cent annual interest rate on all cumulative amounts drawn down, with interest to be paid monthly in arrears.
Further, should Allegra decide to raise capital during the loan term, it may offer the lender the option to convert any or all of the current loan balance to shares.
If Robinwood does not take up the offer in full, however, any loan balances outstanding at the end of the term may be converted to Allegra shares, subject to shareholder approval.
Here, the conversion price would represent a 10 per cent discount to the 90-day volume-weighted average price.
Alternatively, AMT may repay the outstanding balance to the lender.
Allegra Orthopaedics shares are in the grey, last trading at 32 cents each at 4:51 pm AEST.