EDAP TMS SA (Nasdaq: EDAP) (“EDAP” or the “Company”), a global leader in robotic, energy-based therapeutic technologies, today announced that it has entered into a €36 million multi-tranche credit facility (the “Credit Facility”) with the European Investment Bank (EIB). The financing is backed by a guarantee by InvestEU, the European Commission’s program to sustain innovation.
Proceeds from the financing will be used to support the continued global expansion of the Company’s Focal One® Robotic High-Intensity Focused Ultrasound (HIFU) platform. The funds will also accelerate the development of new clinical indications for the Company’s innovative HIFU technology.
EDAP expects to draw the first tranche of €11 million under the Credit Facility in the fourth quarter of 2025.
“This Credit Facility provides EDAP with an important source of strategic growth capital,” said Ryan Rhodes, Chief Executive Officer of EDAP TMS. “These financial resources will enable us to further expand the reach of Focal One® Robotic HIFU to meet the growing global patient demand for effective non-invasive treatment options for both cancer and benign conditions”
“Health and Life sciences are an important part of the European Investment Bank’s focus. The EIB is happy to support the next development phase of the Lyon-based medical technology company EDAP, and its innovative robotic HIFU platform designed for treating prostate cancer and endometriosis with non-invasive solutions”, said Ambroise Fayolle, Vice-President of the EIB.
The collaboration with the EIB underscores EDAP’s ongoing commitment to driving innovation in urological, gynecological and therapy-based care through the development and commercialization of cutting-edge robotic HIFU technologies.
Key Elements of the Credit Facility are as follows:
The Credit Facility provides a loan to the Company in the amount of up to EUR 36 million that can be accessed, upon the achievement of certain conditions and milestones, in three separate tranches: Tranche A for EUR 11 million at interest rate of 8%, Tranche B for EUR 12 million at interest rate of 7%, and Tranche C for EUR 13 million at interest rate of 6%.
As additional remuneration for the loan, the Company will issue a number of warrants to EIB specific to each Tranche, which shall provide the right to subscribe to the most preferential class of Company shares.
The maturity date of the borrowings for each Tranche is 5 years from the date of disbursement.
Additional details on the terms of the Credit Facility can be found in the Company’s most recent filing with the SEC.
Background information
About EIB
The European Investment Bank (EIB), whose shareholders are the Member States of the European Union (EU), is the EU’s long-term financing institution. Across eight major priorities, we support investments in climate action and the environment, digital transition and technological innovation, security and defense, cohesion, agriculture and the bioeconomy, social infrastructure, capital markets union, and a stronger Europe in a more peaceful and prosperous world. In 2024, the EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing in support of more than 900 projects in Europe and worldwide.
About InvestEU
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps to attract private investment for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme has three components: The InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
About EDAP TMS SA
A recognized leader in robotic energy-based therapies, EDAP TMS develops, manufactures, promotes and distributes worldwide minimally invasive medical devices for various conditions using ultrasound technology. By combining the latest technologies in imaging, robotics and precise non-invasive energy delivery, EDAP introduced the Focal One® in Europe and in the U.S. as the leading prostate focal therapy controlled by urologists with the potential to expand to multiple indications beyond prostate cancer. For more information on the Company, please visit https://focalone.com/.
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