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InspireMD receives $10M from Hercules Technology Growth Capital

10/24/2013
InspireMD Inc. (NYSE MKT: NSPR) (“InspireMD” or the “Company”), a leader in embolic protection stents, today announced that it has secured $10 million in venture debt financing to support expanding its ability to execute on emerging clinical research and product development efforts. The Company also announced it has adopted a stockholder rights plan effective for a one year period.

Alan Milinazzo, President and Chief Executive Officer of InspireMD, commented, “While we have the necessary capital to support our existing business and clinical efforts, we intend to strategically increase the Company’s access to capital to fund the expansion of our clinical studies and product development strategy, while limiting shareholder dilution. Our initial action includes securing $10 million of venture debt. With this added capital, we can accelerate critical product development and clinical programs to expand our MicroNet therapeutic platform as well as facilitating ongoing discussions with potential strategic partners.”

With respect to the stockholder rights plan, Sol Barer, Chairman of InspireMD’s Board of Directors commented, “As we expand our pipeline of exciting new stent technologies addressing significant underserved medical conditions, we believe it is prudent to institute the rights plan in order to protect our shareholders’ interests. This is due to the Board’s concern that the current share price for the Company’s common stock doesn’t take into account the existing product portfolio as well as pending development activities. Our goal is to ensure that if an event were to arise it would take into account the overall value of these efforts.”

InspireMD closed the $10 million venture debt financing with Hercules Technology Growth Capital (NYSE: HTGC). The funding is in the form of secured indebtedness bearing interest at a calculated prime-based variable rate currently set at 10.5%. Payments under the loan agreement are interest only for 9 months, followed by 30 monthly payments of principal and interest through the scheduled maturity date on February 1, 2017. In connection with the loan agreement, InspireMD issued Hercules warrants, which are exercisable for 168,351 shares of Common Stock at a per share exercise price of $2.97.

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