By Devika Patel
Knoxville, Tenn., March 30 – Augmedix, Inc. completed a $17 million four-year loan financing with Eastward Fund Management, LLC on March 25, according to an 8-K filed with the Securities and Exchange Commission.
The loan consists of $15 million borrowed initially with an additional $2 million that will become available to the company once it achieves certain milestones between Oct. 30 and Nov. 30.
The loan accrues interest at 875 basis points plus the greater of Prime and 325 bps.
The company has issued 10-year warrants to Eastward Fund for 346,500 common shares, increasing to 392,700 shares if the second tranche closes, each exercisable at $3.00.
A portion of the proceeds were used to pay down $13 million of the company’s long-term debt, with the remainder being used for working capital and general corporate purposes.
The provider of remote medical documentation and live clinical support is based in San Francisco.
| Issuer: | Augmedix, Inc.
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| Issue: | Loan
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| Amount: | $17 million
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| Maturity: | Four years
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| Coupon: | 875 bps plus the greater of Prime and 325 bps
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| Warrants: | For 346,500 shares, increasing to 392,700 shares if second tranche closes
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| Warrant expiration: | 10 years
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| Warrant strike price: | $3.00
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| Investor: | Eastward Fund Management, LLC
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| Settlement date: | March 25 (for $15 million)
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| Distribution: | Private placement
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