The Trendlines Group has entered a deal for a US$700,000 loan from Agriline to partially finance the Singapore-listed company’s participation in a Series C fundraising round by Vensica Medical, which is a Trendlines portfolio company, according to a filing to SGX Wednesday.
Trendlines plans to invest around US$1.3 million into Vensica Medical for an additional 57,362 shares, with its stake in the company set to fall to 11 percent after the fundraising round, from 17 percent, due to dilution, the company said.
The loan will have a fixed annual interest rate of 7 percent, and the 30,887 shares of Vensica purchased with the loan proceeds will be pledged as security, Trendlines said. That indicates the Vensica shares are valued at US$22.66 each.
The repayment of the loan is limited to funds from any distribution by Vensica, and/or exit proceeds, Trendlines said. The loan is only payable if Vensica has an initial public offering, if Vensica makes any distribution, or if Vensica is involved in any consolidation, merger, asset sale or similar transaction with another entity, or if Trendlines sells the pledged shares, the filing said.
In addition, Trendlines said it would pay Agriline 20 percent of any profits on the pledged shares in an exit event, capped at US$4.5 million.
“The board is of the view of that the loan (including the additional maximum payment) is attractive as it provides the company an opportunity to continue its investment in Vensica and to enable the company to participate in the potential future growth of Vensica. In addition, it also allows the company to not have its shareholding percentage in Vensica being diluted further pursuant to the
subscription,” Trendlines said.
Israel-based Vensica Medical, which developed an ultrasound-based catheter for improved drug delivery to the bladder, has raised a total of US$19.2 million in funding from six investors, according to Crunchbase data.
The data show Vensica’s latest round, on 1 November, was led by Israel Biotech Fund and raised US$16 million.
Agriline is an investment vehicle owned by a trust controlled by Trendlines’ controlling shareholder, Vincent Tchenguiz, Crunchbase data showed. Agriline invested in Vensica’s latest funding round, the data show.