CHF Solutions Receives $1.66 Million under SBA’s Paycheck Protection Program and $1.1 Million from Warrant Exercises
April 21 2020 - 8:00AM
CHF Solutions (Nasdaq: CHFS), a small and growing medical device
company dedicated to changing the lives of patients suffering from
fluid overload, announced receipt of $1.66 million under the
Paycheck Protection Program (PPP) under the federal Coronavirus
Aid, Relief, and Economic Security (CARES) Act. This amount
represents the full amount available to the company, based on its
payroll expense. In addition, the company has received
approximately $1.1 million in proceeds from the exercise of
outstanding warrants.
With these funds, in addition to the proceeds from the three
previously announced equity financings closed earlier this year,
the company’s total pro forma cash balance, as of December 31,
2019, is approximately $15.7 million, based on its most recently
reported financial results.
“We are impressed and thankful for the speed and efficiency in
which our bank processed our application, providing additional
funding for a growing company,” said John Erb, CEO of CHF
Solutions. “We continue to see an increased use of the Aquadex
SmartFlow™ system to treat critically-ill COVID-19 patients. During
this pandemic, we hired additional assemblers to meet increased
demand for the therapy.”
The principal amount of the PPP loan will be fully forgiven if
the company uses the funds solely for the purposes outlined under
the program over the next eight weeks: at least 75% for payroll,
including employee benefits, and the remaining 25% for rent and
utilities. The PPP loan has a fixed interest rate of 1.00% and
maturity of two years. All payments are deferred for six months. No
collateral or personal guarantees were required for the PPP loan.
CHF Solutions expects to meet the forgiveness terms of the
program.
The warrants had a current exercise price of $0.30 per share and
were issued as part of the units sold in the company’s underwritten
public offering which closed on January 28, 2020.
About CHF Solutions CHF Solutions, Inc.
(Nasdaq: CHFS) is a medical device company dedicated to improving
the lives of patients suffering from fluid overload with its novel
ultrafiltration therapy system. The company is focused on
developing, manufacturing and commercializing the Aquadex SmartFlow
system for ultrafiltration therapy. CHF Solutions is headquartered
in Minneapolis, Minn., with wholly-owned subsidiaries in Australia
and Ireland. The company has been listed on the Nasdaq Capital
Market since February 2012.
About the Aquadex SmartFlow System The Aquadex
SmartFlow system delivers clinically proven therapy using a simple,
flexible and smart method of removing excess fluid from patients
suffering from hypervolemia (fluid overload). The Aquadex SmartFlow
system is indicated for temporary (up to 8 hours) or extended
(longer than 8 hours in patients who require hospitalization) use
in adult and pediatric patients weighing 20 kg or more whose fluid
overload is unresponsive to medical management, including
diuretics. All treatments must be administered by a health care
provider, within an outpatient or inpatient clinical setting, under
physician prescription, both having received training in
extracorporeal therapies.
Forward-Looking Statements Certain statements
in this release may be considered forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including without limitation, statements about the use of
funds from the Paycheck Protection Program Loan. Forward-looking
statements are predictions, projections and other statements about
future events that are based on current expectations and
assumptions and, as a result, are subject to risks and
uncertainties. Many factors could cause actual future events to
differ materially from the forward-looking statements in this
release, including, without limitation, those risk associated with
our ability to execute on our commercial strategy, the possibility
that we may be unable to raise sufficient funds necessary for our
anticipated operations, our post-market clinical data collection
activities, benefits of our products to patients, our expectations
with respect to product development and commercialization efforts,
our ability to increase market and physician acceptance of our
products, potentially competitive product offerings, intellectual
property protection, our ability to integrate acquired businesses,
our expectations regarding anticipated synergies with and benefits
from acquired businesses, and other risks and uncertainties
described in our filings with the SEC. Forward-looking statements
speak only as of the date when made. CHF Solutions does not assume
any obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
CONTACTS
INVESTORS:
Claudia Napal Drayton
Chief Financial Officer, CHF Solutions, Inc.
952-345-4205
ir@chf-solutions.com
MEDIA:
Jessica Stebing
Health+Commerce
260-336-6202
jstebing@healthandcommerce.com
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