Delaware | 001-37474 | 56-2463152 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered |
Common Stock, $0.00001 par value per share | CFMS | The Nasdaq Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). |
Emerging growth company | þ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | þ |
Item 1.01 | Entry into a Material Definitive Agreement. |
Item 2.02 | Results of Operations and Financial Condition. |
Item 2.03 | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits. |
CONFORMIS, INC. | ||||||
Date: July 6, 2020 | By: | /s/ Robert S. Howe | ||||
Robert S. Howe | ||||||
Chief Financial Officer |
1. | Capitalized terms used herein but not otherwise defined shall have the respective meanings given to them in the Loan Agreement. |
2. | Section 2.2(d) of the Loan Agreement is hereby amended and restated as follows: |
3. | Section 6.12 of the Loan Agreement is hereby amended and restated as follows: |
Quarter Ending | Minimum T6M Product Revenue in millions |
December 31, 2019 | $32.5 |
March 31, 2020 | $36.0 |
June 30, 2020 | Waived |
September 30, 2020 | Waived |
December 31, 2020 | Waived |
March 31, 2021 | $36.0 |
June 30, 2021 | $36.0 |
September 30, 2021 | $37.0 |
December 31, 2021 | $39.5 |
March 31, 2022 | $39.5 |
June 30, 2022 | $39.5 |
September 30, 2022 | $41.0 |
December 31, 2022 | $43.0 |
March 31, 2023 | $43.5 |
June 30, 2023 | $43.5 |
September 30, 2023 | $43.5 |
December 31, 2023 | $45.5 |
March 31, 2024 | $46.0 |
4. | Section 6.13 of the Loan Agreement is herby amended and restated as follows: |
5. | The following Section 6.15 is hereby added to the Loan Agreement: |
6. | Section 8.2(a) of the Loan Agreement is hereby amended and restated as follows: |
7. | Section 13 of the Loan Agreement is hereby amended by amending and restating the following definition therein as follows: |
8. | Section 13 of the Loan Agreement is hereby further amended by adding the following definition thereto in alphabetical order: |
9. | Collateral Agent and Required Lenders hereby waive any Event of Default directly resulting from Borrower’s failure to fulfill its obligations with respect to Section 6.12 for the fiscal quarter ending on June 30, 2020 (“Potential Event of Default”), as such Section was in effect prior to the date hereof. |
10. | Limitation of Amendment. |
a. | The amendments and waivers set forth above are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right, remedy or obligation which Lenders or Borrower may now have or may have in the future under or in connection with any Loan Document, as amended hereby. |
b. | This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, are hereby ratified and confirmed and shall remain in full force and effect. |
11. | To induce Collateral Agent and Required Lenders to enter into this Amendment, Borrower hereby represents and warrants to Collateral Agent and Required Lenders as follows: |
a. | Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default (other than the Potential Event of Default) has occurred and is continuing; |
b. | Borrower has the power and due authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; |
c. | The organizational documents of Borrower delivered to Collateral Agent on the Effective Date, and updated pursuant to subsequent deliveries by or on behalf of the Borrower to the Collateral |
d. | The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not contravene (i) any material law or regulation binding on or affecting Borrower, (ii) any material contractual restriction with a Person binding on Borrower, (iii) any material order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (iv) the organizational documents of Borrower; |
e. | The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and |
f. | This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights. |
12. | Except as expressly set forth herein, the Loan Agreement shall continue in full force and effect without alteration or amendment. This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. |
13. | The Borrower hereby remises, releases, acquits, satisfies and forever discharges the Lenders and Collateral Agent, their agents, employees, officers, directors, predecessors, attorneys and all others acting or purporting to act on behalf of or at the direction of the Lenders and Collateral Agent (“Releasees”), of and from any and all manner of actions, causes of action, suit, debts, accounts, covenants, contracts, controversies, agreements, variances, damages, judgments, claims and demands whatsoever, in law or in equity, which any of such parties ever had, now has or, to the extent arising from or in connection with any act, omission or state of facts taken or existing on or prior to the date hereof, may have after the date hereof against the Releasees, for, upon or by reason of any matter, cause or thing whatsoever relating to or arising out of the Loan Agreement or the other Loan Documents on or prior to the date hereof through the date hereof. Without limiting the generality of the foregoing, the Borrower waives and affirmatively agrees not to allege or otherwise pursue any defenses, affirmative defenses, counterclaims, claims, causes of action, setoffs or other rights they do, shall or may have as of the date hereof, including the rights to contest: (a) the right of Collateral Agent and each Lender to exercise its rights and remedies described in the Loan Documents; (b) any provision of this Amendment or the Loan Documents; or (c) any conduct of the Lenders or other Releasees relating to or arising out of the Loan Agreement or the other Loan Documents on or prior to the date hereof. |
14. | This Amendment shall be deemed effective as of the date first set forth above upon the due execution and delivery to Collateral Agent of this Amendment by each party hereto. |
15. | This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, and all of which, taken together, shall constitute one and the same instrument. |
16. | This Amendment and the rights and obligations of the parties hereto shall be governed by and construed in accordance with the laws of the State of New York. |
BORROWER: | ||
CONFORMIS, INC. | ||
By: | /s/ Mark Augusti | |
Name: | Mark Augusti | |
Title: | President & Chief Executive Officer | |
BORROWER: | ||
IMATX, INC. | ||
By: | /s/ Mark Augusti | |
Name: | Mark Augusti | |
Title: | President & Treasurer |
BORROWER: | ||
CONFORMIS CARES LLC | ||
By: | /s/ Mark Augusti | |
Name: | Mark Augusti | |
Title: | President & Chief Financial Officer |
COLLATERAL AGENT AND REQUIRED LENDER: | ||
INNOVATUS LIFE SCIENCES LENDING FUND I, LP | ||
By: Innovatus Life Sciences GP, LP | ||
Its: General Partner | ||
By: | /s/ Andrew Hobson | |
Name: | Andrew Hobson | |
Title: | Authorized Signatory |
• Total revenue of approximately $19.5 million, down 1% year-over-year on a reported and constant currency basis |
• Royalty revenue of approximately $9.7 million, including a royalty settlement of $9.6 million |
• Product revenue of approximately $9.7 million, down 50% year-over-year on a reported basis |
• U.S. product revenue of approximately $8.3 million, down 52% year-over-year on a reported basis |
• Rest of world product revenue of approximately $1.4 million, down 34% year-over-year on a reported basis and 33% on a constant currency basis |