Augmedix extends term loan facility, finalizes terms for line of credit

Augmedix announced that it has amended its existing senior secured term loan facility with Silicon Valley Bank, a division of First Citizens Bank, which may extend the interest only period by as long as 18 months from January 2024 to July 2025, and finalized terms on its previously disclosed equity line of credit with Redmile Group. Combined with the $12 million of new equity from HCA Healthcare, Inc. and Redmile announced in April 2023, these actions bolster the Company’s financial strength and enhance its liquidity cushion as it scales the business toward the goal of achieving cash flow sustainability.The equity line of credit with Redmile Group is expected to provide Augmedix, at solely the Company’s option, the backstop to raise up to $5 million at $1.60 per share, with access to this facility for approximately the second half of 2024. The availability of the line of credit is subject to a shareholder vote at the Company’s annual shareholder meeting, expected to take place in the middle of July 2023. Based upon its operating plans, management does not anticipate utilizing this facility. The extension of the interest only period of the senior secured term loan facility is subject to certain conditions, as set forth in the amendment to the senior secured loan facility, and the availability of the equity line of credit is subject to certain conditions, as set forth in the equity line of credit Securities Purchase Agreement.