Sweden: IRRAS signs €10 million loan financing deal with EIB
The financing from the EIB falls under the new venture debt programme of the European Guarantee Fund, set up in 2020 to assist European companies that have come under strain due to the COVID-19 pandemic.
IRRAS, a commercial-stage medical technology company with a comprehensive portfolio of innovative products for neurocritical care, has signed a loan financing agreement with the European Investment Bank (EIB), amounting to €10 million. The financing agreement with the EIB will provide non-dilutive financing for the company to accelerate product development and clinical data generation for its IRRA flow platform in the European Union. The financing from the EIB falls under the new venture debt programme of the European Guarantee Fund, set up in 2020 to assist European companies that have come under strain due to the COVID-19 pandemic.
Through the financing agreement, the company will be able to borrow up to €10 million in two loan tranches over the coming years based upon the achievement of agreed performance criteria. The initial loan amounts will be received during 2021 and will be allocated to fund next-generation product development and clinical trial efforts based in the European Union. Utilising these funds for product development and clinical data generation will allow funds raised during the company's recent direct share issue to be used to support the continued acceleration of commercial launch activities. The specific terms and conditions of the financing agreement are not disclosed.
EIB Vice-President Thomas Östros stated: "IRRAS is a very innovative company whose growth plans were negatively impacted by the restrictions that were needed to fight COVID-19. Under the European Guarantee Fund, we now have more possibilities to get financing to this type of company, which will help us support important home-grown European technologies in the wake of the pandemic."
"The funding commitment by the EIB is the result of extensive due diligence over several months and serves as a confirmation of IRRAS' ability to build a global leader in neurocritical care," said Will Martin, President and Chief Executive Officer of IRRAS. "This investment enables us to collect additional clinical evidence to confirm the superiority of IRRAflow to traditional drainage, while also developing next-generation systems that are tailored for targeted drug delivery and treatment in other clinical scenarios."