08:11 AM EDT, 07/03/2024 (MT Newswires) -- Nyxoah ( NYXH ) said Wednesday it signed a loan facility agreement with the European Investment Bank for 37.5 million euros ($40.3 million).

The facility is divided into tranches, starting with 10 million euros, 13.75 million euros, and then 13.75 million euros with disbursement subject to various conditions, Nyxoah ( NYXH ) said. The first tranche has an annual 5% cash and 5% capitalized interest rate with a five-year bullet repayment schedule, according to the company.

Nyxoah ( NYXH ) added that all tranches do not contain revenue or liquidity covenants.

Under the facility agreement, Nyxoah ( NYXH ) said it would grant the EIB 20-year synthetic warrants that will entitle the EIB to receive cash consideration from the company. Nyxoah ( NYXH ) expects to grant the EIB 468,384 synthetic warrants with a strike price of 8.11 euros, exercisable after the first tranche matures in five years.

The company said it expects to use the funding for research and development, as well as increasing its manufacturing capacity to meet demand in Europe and the US.

Shares of the company were up nearly 4% in recent Wednesday premarket activity.

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