Horizon Technology Finance Provides $35 Million Venture Loan Facility to GT Medical Technologies

Rhea-AI Summary

Horizon Technology Finance (NASDAQ: HRZN) has provided a $35 million venture loan facility to GT Medical Technologies, Inc. (GT MedTech), with $15 million initially funded. GT MedTech's flagship product, GammaTile®, is a bioresorbable collagen tile embedded with radiation seeds (Cesium-131) for treating brain tumors. This innovative solution delivers targeted radiation directly to the tumor cavity, reducing recurrence and minimizing exposure to healthy tissue.

GT MedTech, backed by investors like MVM Partners and Glide Healthcare Partners, will use the loan for growth and working capital. The FDA-cleared GammaTile aims to transform brain tumor treatment standards while offering a cost-effective reimbursement profile for hospitals.

Positive

• Secured $35 million venture loan facility from Horizon Technology Finance
• FDA-cleared GammaTile® offers innovative brain tumor treatment
• Potential to transform standard of care in brain tumor treatment
• Cost-effective reimbursement profile for hospitals
• Backed by top-tier investors including MVM Partners and Glide Healthcare Partners

Negative

• None.

Insights

Financial Analyst

The $35 million venture loan facility to GT Medical Technologies represents a significant financial boost for the company. With $15 million initially funded, it provides substantial working capital for growth initiatives. This financing from Horizon Technology Finance, an affiliate of Monroe Capital, underscores investor confidence in GT MedTech's GammaTile technology. The backing of top-tier investors like MVM Partners and Glide Healthcare Partners further validates the company's potential. From a financial perspective, this funding could accelerate GT MedTech's market expansion and commercial efforts, potentially leading to increased revenue and market share in the brain tumor treatment space. However, investors should note that the company's ability to repay the loan will depend on the successful commercialization of GammaTile and its adoption in the medical community.

Medical Research Analyst

GT Medical Technologies' GammaTile represents a significant advancement in brain tumor treatment. The product's unique approach of delivering targeted radiation directly to the tumor cavity addresses a critical need in post-surgical care. The FDA clearance of GammaTile is a major regulatory milestone, indicating its safety and efficacy. The technology's ability to minimize radiation exposure to healthy tissue while delivering a high dose to the tumor site could potentially improve patient outcomes and quality of life. From a research perspective, this innovation could spark further studies on targeted radiation therapies and inspire new approaches to treating other types of cancers. The venture loan facility could accelerate clinical research and real-world evidence generation, which are important for wider adoption in the medical community.

Market Research Analyst

The $35 million venture loan to GT Medical Technologies signals strong market potential for their GammaTile product. The brain tumor treatment market is projected to grow significantly, driven by increasing cancer incidence and demand for advanced therapies. GammaTile's unique value proposition of targeted radiation therapy could disrupt traditional treatment methods. The product's cost-effective reimbursement profile for hospitals is a key selling point, potentially driving faster adoption. However, market penetration will depend on educating healthcare providers and overcoming resistance to change in established treatment protocols. The funding could support important marketing and education efforts. If successful, GT MedTech could capture a significant share of the brain tumor treatment market, but investors should monitor adoption rates and reimbursement decisions by insurers as key indicators of market success.

FARMINGTON, Conn.--(BUSINESS WIRE)-- Horizon Technology Finance Corporation (NASDAQ: HRZN) (“Horizon” or the “Company”), an affiliate of Monroe Capital, and a leading specialty finance company that provides capital in the form of secured loans to venture capital-backed companies in the technology, life science, healthcare information and services, and sustainability industries, today announced it has provided a $35 million venture loan facility to GT Medical Technologies, Inc. (“GT MedTech”), of which $15 million has been initially funded.

GT MedTech, through its innovative flagship product, GammaTile^®, offers a proprietary solution to treat brain tumors. GammaTile is a bioresorbable collagen tile embedded with radiation seeds (Cesium-131), an isotope used to deliver a high dose of radiation directly to the tumor cavity, helping to reduce tumor recurrence. Unlike external beam radiation therapy, GammaTile uses surgically targeted radiation therapy, minimizing excess radiation exposure to healthy tissue.

GT MedTech is backed by top-tier investors including MVM Partners, Glide Healthcare Partners, MedTech Venture Partners and BlueStone Venture Partners. The company will use the loan proceeds for general growth and working capital.

“GT MedTech is pioneering brain tumor treatment with its FDA-cleared GammaTile,” said Gerald A. Michaud, President of Horizon. “This solution will help transform the standard of care, while offering a cost-effective reimbursement profile to hospitals, creating a clear win for all stakeholders in the healthcare ecosystem.”

“We are delighted to have Horizon’s support as we expand the reach of our groundbreaking GammaTile solution,” said Per Langoe, Chief Executive Officer of GT MedTech. “By delivering targeted radiation immediately after tumor removal, GammaTile provides focused radiation to the tumor cavity, helping eradicate residual tumor cells. Our partnership with Horizon Technology Finance will allow us to continue our strategic commercial and market expansion initiatives, helping bring GammaTile to more patients in need.”

About Horizon Technology Finance

Horizon Technology Finance Corporation (NASDAQ: HRZN), externally managed by Horizon Technology Finance Management LLC, an affiliate of Monroe Capital, is a leading specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services, and sustainability industries. The investment objective of Horizon is to maximize its investment portfolio’s return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located throughout the U.S. Monroe Capital is a $19.5 billion asset management firm specializing in private credit markets across various strategies, including direct lending, technology finance, venture debt, opportunistic, structured credit, real estate and equity. To learn more, please visit horizontechfinance.com.

About GT Medical Technologies, Inc.

Driven to raise the standard of care and improve the lives of patients with brain tumors, a team of brain tumor specialists formed GT Medical Technologies. GammaTile is FDA-cleared as a treatment for patients with newly diagnosed malignant intracranial neoplasms and patients with recurrent intracranial neoplasms. Since its full market release in the United States in March 2020, GammaTile has been offered in over 100 leading institutions, with more centers being added each month. For more information, visit www.gtmedtech.com and follow @GammaTile on Twitter and LinkedIn.

Forward-Looking Statements

Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in the Company’s filings with the Securities and Exchange Commission. Horizon undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240912773483/en/

Investor Relations:

ICR

Garrett Edson

ir@horizontechfinance.com

(860) 284-6450

Media Relations:

ICR

Chris Gillick

HorizonPR@icrinc.com

(646) 677-1819

GT Medical Technologies, Inc. Media Relations:

GT Medical Technologies

Lori Kagan

lkagan@gtmedtech.com

New Dawn Communications

Dawn Fallon

dfallon@newdawncomms.com

Source: Horizon Technology Finance Corporation

FAQ

What is the size of the venture loan facility provided by Horizon Technology Finance (HRZN) to GT Medical Technologies?

Horizon Technology Finance (HRZN) provided a $35 million venture loan facility to GT Medical Technologies, with $15 million initially funded.

What is GT Medical Technologies' flagship product for brain tumor treatment?

GT Medical Technologies' flagship product is GammaTile®, a bioresorbable collagen tile embedded with radiation seeds (Cesium-131) for targeted brain tumor treatment.

How does GammaTile® differ from traditional radiation therapy for brain tumors?

GammaTile® uses surgically targeted radiation therapy, delivering a high dose of radiation directly to the tumor cavity, which helps reduce tumor recurrence and minimizes excess radiation exposure to healthy tissue compared to external beam radiation therapy.

What will GT Medical Technologies use the loan proceeds for?

GT Medical Technologies will use the loan proceeds from Horizon Technology Finance (HRZN) for general growth and working capital purposes.