Übersicht
The promoter is a medical device innovator focusing on medical cooling technology. The project will support the promoter's investments in research, development and innovation (RDI) to accelerate the refining of its product portfolio, perform further clinical studies and develop additional complementary products which can broaden the indications for use, thereby expanding the promoter's ability to improve patient outcomes.
The aim is to contribute to improve the lives of stroke, cardiac arrest and oncology patients (among other indications), bringing significant medical benefits to the healthcare sector.
The purpose of the loan is to provide direct equity-type financing under the Thematic Innovation window of InvestEU, benefiting from the EC guarantee, to finance research and development activities of the Company's innovative medical cooling technology that addresses indications and areas of significant medical added value within the healthcare sector, namely, stroke, sudden cardiac arrest, and oncology (among other indications).
The financing of this project addresses the failure in the financial markets for RDI-driven European SMEs suffering from systemic shortages of large, non-dilutive financing options for growth investments. Creation of knowledge and support of skilled jobs in Sweden will further contribute positively towards the EU's 3% RDI intensity target. Currently, the Company does not have access either to non-dilutive or to long-term debt funding sources in the necessary amount. Due to the volatility of European markets which has significantly increased in 2022, access to both equity markets and commercial debt providers has been highly limited for innovative but risky companies such as BrainCool.
Structuring the financing as venture debt caters to the investment needs of the Company, with a long tenor and PIK interest minimising cash outflows during the investment period, while most of the EIB remuneration will be driven by the equity kicker.
The operation could not be done without InvestEU support.
The project concerns investments in research and development activities carried out by the promoter and its partners in existing facilities without changing their already authorised scope. The related RDI activities do not fall under either Annex I or Annex II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU (amended by Directive 2014/52/EU). Full environmental details will be verified during appraisal.
The EIB requires that all project contracts are procured in accordance with the applicable EU procurement legislation.