IRRAS signs €10 million loan financing deal with European Investment Bank, supported by the European Guarantee Fund.
IRRAS now has access to €10 million from the EIB, providing stable, long-term funding on flexible repayment terms, and tailored to meet its research and development objectives.
The EGF is part of the €540 billion EU rescue package in response to the COVID-19 pandemic.
IRRAS, a commercial-stage medical technology company with a comprehensive portfolio of innovative products for neurocritical care, has signed a loan financing agreement with the European Investment Bank (EIB), amounting to €10 million. The financing agreement with the EIB will provide non-dilutive financing for the company to accelerate product development and clinical data generation for its IRRAflow platform in the European Union. The financing from the EIB falls under the new venture debt programme of the European Guarantee Fund, set up in 2020 to assist European companies that have come under strain due to the COVID-19 pandemic.
Through the financing agreement, the company will be able to borrow up to €10 million in two loan tranches over the coming years based upon the achievement of agreed performance criteria. The initial loan amounts will be received during 2021 and will be allocated to fund next generation product development and clinical trial efforts based in the European Union. Utilising these funds for product development and clinical data generation will allow funds raised during the company’s recent direct share issue to be used to support continued acceleration of commercial launch activities. The specific terms and conditions of the financing agreement are not disclosed.
EIB Vice-President Thomas Östros stated: “IRRAS is a very innovative company whose growth plans were negatively impacted by the restrictions that were needed to fight COVID-19. Under the European Guarantee Fund we now have more possibilities to get financing to this type of company, which will help us support important home-grown European technologies in the wake of the pandemic.”
“The funding commitment by the EIB is the result of extensive due diligence over several months and serves as confirmation of IRRAS' ability to build a global leader in neurocritical care,” said Will Martin, President and Chief Executive Officer of IRRAS. “This investment enables us to collect additional clinical evidence to confirm the superiority of IRRAflow to traditional drainage, while also developing next generation systems that are tailored for targeted drug delivery and treatment in other clinical scenarios.”
In 2020, the EIB made available in excess of €2 billion for Swedish projects. The EIB borrows money on the capital markets and lends it to projects that support EU objectives, with about 90% of all loans being granted within the European Union.
The European Guarantee Fund (EGF) was set up by the EIB Group with contributions from Sweden and other EU Member States to shield companies suffering from the COVID-19 crisis. Using nearly €25 billion in guarantees, the EGF enables the EIB and the EIF to quickly make loans, guarantees, asset-backed securities, equity and other financial instruments available to mostly small and medium-sized enterprises. The EGF is part of the European Union’s recovery package aiming to provide a total of €540 billion to boost those parts of the EU economy that have been hit the worst.
IRRAS is a global medical care company focused on innovative medical solutions to improve the lives of critically ill patients. IRRAS designs, develops, and commercialises neurocritical care products that transform patient outcomes and decrease the overall cost of care by addressing complications associated with current treatment methodologies. IRRAS markets and sells its comprehensive, innovative IRRAflow and Hummingbird ICP Monitoring product lines to hospitals worldwide through its direct sales organisation in the United States and select European countries as well as an international network of distribution partners.
IRRAS maintains its headquarters in Stockholm, Sweden, with corporate offices in Munich, Germany, and San Diego, California, USA. For more information, please visit www.irras.com.
IRRAS AB (publ) is listed on Nasdaq Stockholm (ticker: IRRAS).
IRRAflow®, the company’s lead commercial product, is used to drain blood and excess cerebrospinal or irrigation fluids and simultaneously monitor intracranial pressure in patients with haemorrhagic strokes and chronic subdural hematomas. Both are serious conditions with high rates of mortality. IRRAflow® addresses complications that commonly arise from current treatment methods. At the same time, the company’s Hummingbird® ICP Monitoring family of products also offers an important diagnostic tool to monitor patients’ conditions after a traumatic brain injury has occurred. This tool is utilised to determine when intervention with a therapeutic tool, such as IRRAflow®, will be required and is more accurate and easier to use than other ICP monitoring systems.
 A subdural hematoma (SDH) is a type of bleeding in which a collection of blood—usually associated with a traumatic brain injury—gathers between the inner layer of the dura mater and the arachnoid mater of the meninges surrounding the brain.
The European Guarantee Fund (EGF), part of the €540 billion EU recovery package agreed in 2020, has approved funding amounting to almost half its target for 2021. After clearance under the EU state aid notification process in December 2020, the initiative has now approved €11.7 billion in support of European businesses struggling with the economic fallout of the COVID-19 pandemic. This is almost half the fund’s target for 2021. The fund mobilises additional financing, and initiatives financed so far are expected to generate €93.9 billion in funding for the EU economy. With €2.1 billion in financing also signed at the end of April, EGF funding is already reaching businesses across the European Union.
The European Investment Bank (EIB) and the Croatian Bank for Reconstruction and Development (HBOR) have signed a Guarantee Agreement amounting to €50 million for loans to Croatian mid-caps and large corporates to finance their recovery from the effects of the COVID-19 pandemic. The EIB contribution stems from the European Guarantee Fund (EGF) set up by the EIB Group in 2020 to accelerate the post-COVID-19 recovery of Europe’s economy, safeguard jobs, and provide much needed liquidity to European companies.
The European Guarantee Fund, which started operations in December 2020, has reached €16 billion in approved financing at the end of June. This represents over 65% of the available € 24.4 billion in EU Member States’ guarantees to support financing to European businesses struggling after the economic downturn. Total signatures with beneficiaries of financing under the EGF stood at €8.4 billion, mostly benefitting SMEs.