Augmedix Inc.

06/26/2024 | Press release | Distributed by Public on 06/26/2024 14:43

Material Agreement Form 8 K

Item 1.01. Entry into a Material Definitive Agreement.
Entry into Second Amendment to Loan and Security Agreement
On June 26, 2024 (the "Effective Date"), Augmedix, Inc., a Delaware corporation (the "Company") and Augmedix Operating Corporation, a Delaware corporation ("OpCo"), each entered into that certain Second Amendment to Loan and Security Agreement (the "Amendment") by and among the Company and OpCo as borrowers (individually and collectively, "Borrower") and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company ("Lender") which amends certain provisions of the Loan and Security Agreement by and among Borrower and Lender dated as of May 4, 2022 as amended by the First Amendment to Loan and Security Agreement dated as of June 13, 2023 ("Existing LSA").
The Amendment provides for, among other things:
Term Loan Facility:
Under the Existing LSA, the term loan facility's stated maturity date is June 1, 2025, provided that, if Borrower achieves certain performance and equity milestones, the term loan facility maturity date will automatically be extended to December 1, 2025. The Amendment extends the term loan facility's stated maturity date to December 1, 2026.
Under the Existing LSA, the term loan facility is interest only until July 1, 2023, provided that if Borrower achieves certain performance and equity milestones, the amortization date automatically extends to January 1, 2024. The Amendment extends the interest only period applicable to the term loan facility until January 1, 2025 and provides that the interest only period may be extended by Lender in its sole and absolute discretion to July 1, 2025.
Revolving Credit Facility:
Under the Existing LSA, the stated maturity date for the revolving credit facility is November 4, 2024. The Amendment provides that the maturity date for the revolving credit facility may be extended by the Lender in its sole and absolute discretion to November 4, 2025.
The Amendment requires the Borrower to maintain $5,000,000 in a cash collateral account maintained with the Lender and pledged in favor of the Lender.
In connection with the Existing LSA, the Company issued to Lender a warrant to purchase up to 190,330 shares of the Company's common stock, at an exercise price of $3.01 per share (the "Existing Warrant"). In connection with the Amendment, the Lender required the Company to amend the Existing Warrant, to, among other things, reduce the exercise price under the Existing Warrant to $1.09 per share, pursuant to the First Amendment to Warrant to Purchase Stock (the "Warrant Amendment").
The foregoing summaries of the Amendment and the Warrant Amendment are not complete and are qualified in their entirety by reference to the full text of the form of the Amendment and the Warrant Amendment attached hereto as Exhibits 10.1 and 4.1, respectively, to this Current Report on Form 8-K.