Strategic Funding to Support Commercial Growth
ImpediMed Limited (ASX: IPD) has secured a US$15 million growth capital facility through its wholly owned U.S. subsidiary, ImpediMed, Inc. The agreement, executed with SWK Funding LLC, a specialist healthcare finance company, provides funding flexibility to support ImpediMed’s growth and commercialisation strategy as it advances towards profitability.
Leadership Commentary
Christine Emmanuel-Donnelly, Chair of ImpediMed:
“This funding provides enhanced balance sheet flexibility while preserving shareholder value. With this new capital in place, we are well-positioned to execute our strategy and drive long-term growth.”
Dr. Parmjot Bains, Managing Director of ImpediMed:
“SWK Holdings’ confidence in ImpediMed and our SOZO digital health platform reinforces our business direction. This facility, combined with existing cash reserves, gives us the time and flexibility to capitalise on market opportunities, particularly within Bioimpedance Spectroscopy for Breast Cancer-Related Lymphedema (BCRL).”
JD Tamas, Director of Underwriting at SWK Holdings:
“We believe the SOZO Digital Health Platform is transforming clinical assessment and patient outcomes. We are excited to support ImpediMed’s mission to push the boundaries of fluid and tissue analysis.”
Key Facility Terms
- Total Facility: US$15 million
- Tranche 1: US$10 million available immediately
- Tranche 2: US$5 million available upon meeting FY25 sales targets
- Term: 60 months
- Interest Rate: SOFR (4.3% floor) + 9.5% margin
- Repayment: Interest-only for 24 months (extendable to 36 months), followed by straight-line amortisation and a 40% balloon payment at maturity
- Warrants: Up to 18.7 million warrants issued, with an exercise price of $0.05139 per share, expiring in seven years
Covenants and Security
- Liquidity covenant: Minimum unrestricted cash balance of US$2.5 million
- Performance covenant: Revenue performance tested over six quarters
- Security: First-ranking security over all assets of ImpediMed and its subsidiaries
Implications for Shareholders
This non-dilutive funding structure strengthens ImpediMed’s balance sheet, ensuring the company has the capital required to accelerate commercial growth without immediate equity dilution. The agreement aligns with its strategic goals and enhances its ability to scale operations efficiently.
Looking Ahead
With this financial backing, ImpediMed is in a strong position to drive SOZO platform adoption, expand commercial efforts, and advance its path to profitability. The company remains committed to improving patient outcomes through innovation in fluid and body composition assessment.
