Stereotaxis entered into a loan modification agreement July 31 with Silicon Valley Bank, extending the maturity of its revolving line of credit from July 31 to Aug. 31, according to a filing with the U.S. Securities and Exchange Commission.
The agreement is the seventh loan modification and waiver agreement the parties have reached and further extends a similar agreement reached in March, according to the filing.
The loan modification is essentially helping Stereotaxis get back on track with the initial loan it received from the bank in 2011.
The bank also waived the testing of the amended loan agreement's liquidity ratio financial covenant for the period ended July 31.
Stereotaxis, a St. Louis-based medical device maker, also entered into an export-import bank sixth loan modification agreement with Silicon Valley Bank that extended the maturity date of its revolving line of credit under that November loan agreement from July 31 to Aug. 31.
In conjunction with the Silicon Valley Bank extension, Alafi Capital Co. LLC and an affiliate of Sanderling Venture Partners extended their lown guarantees to the bank through Aug 31. Also, Stereotaxis agreed to grant Alafi and Sanderling warrants to purchase 14,313 shares of its stock, exercisable at $5.24 per share, in exchange for the extension.
In June, Nasdaq denied Stereotaxis' request for an extension to come into compliance with minimum listing standards for the Nasdaq Global Market, including having $50 million in total assets and total revenue. Stereotaxis officials said at the time they were appealing the decision and would seek to move to the Nasdaq Capital Market, which has lower listing requirements.
