HTG Molecular Diagnostics Secures Senior Term Loan from Silicon Valley Bank

TUCSON, Ariz., June 25, 2020 (GLOBE NEWSWIRE) — HTG Molecular Diagnostics, Inc. (Nasdaq: HTGM) (HTG), a life science company whose mission is to advance precision medicine, today announced that it has entered into a $10.0 million senior term loan agreement with Silicon Valley Bank (SVB), the bank of the world’s most innovative companies and their investors, to replace its existing senior credit facility.

Proceeds from the $10.0 million senior term loan have been used to pay off HTG’s outstanding $7.0 million principal amount term loan with MidCap Financial and its $3.0 million principal amount subordinated convertible promissory note held by Qiagen North American Holdings, Inc. The duration of the senior term loan is 42 months, with interest only payments through June 30, 2021 plus 6 additional months under certain conditions.

The $3.2 million of restricted cash previously held in escrow under the Company’s prior senior credit facility has been released and is available for use in the Company’s operations.

“We are pleased to have the support of such a well-respected life science lender like SVB,” said Shaun McMeans, Senior Vice President and Chief Financial Officer of HTG. “As we continue to execute upon our strategy of growing our core profiling business, building our portfolio with BioPharma and advancing our profiling products towards a diagnostic menu strategy, we believe that our relationship with SVB will be instrumental in allowing us to realize our value-building initiatives.”

“We are excited to support HTG Molecular Diagnostics with this new senior term loan,” said Igor DaCruz, Director of Life Science and Healthcare at Silicon Valley Bank. “SVB has had a long-standing relationship with HTG and we look forward to our continued collaboration as the company pursues its next phase of growth in advancing precision medicine.”

About Silicon Valley Bank:
For more than 35 years, Silicon Valley Bank (SVB) has helped innovative companies and their investors move bold ideas forward, fast. SVB provides targeted financial services and expertise through its offices in innovation centers around the world. With commercial, international and private banking services, SVB helps address the unique needs of innovators. Learn more at svb.com.