Stereotaxis Closes Initial $12 Million of Up to $24 Million in Convertible Notes

Stereotaxis, Inc. has closed the first $12 million of a convertible-note financing that could reach $24 million, giving the surgical robotics company added cash and a path to more funding after regulatory milestones.

The company announced the financing agreements Tuesday, Nov. 10. The initial closing took place Nov. 9, and Stereotaxis may pursue up to another $12 million after specified regulatory milestones.

The notes carry 10% annual interest and mature three years after the initial closing. The initial notes can be converted into common stock at $1.21 per share, a 30% premium to the 10-day volume-weighted average price ending on the trading day before the Nov. 9 closing.

Stereotaxis develops robotic systems for minimally invasive endovascular procedures. Its pro forma cash balance after the initial closing is $16 million. Access to the additional $12 million would bring total availability to $28 million.

The company plans to use net proceeds for working capital, product commercialization, research and development, and other general corporate purposes. The additional financing remains available at Stereotaxis' option after the specified regulatory milestones.