WHITE BEAR LAKE, MN - Envoy Medical Corporation (NASDAQ:COCH), a pioneer in hearing health solutions, has secured a five-year, $10 million lending facility from investor Glen Taylor. The funds are earmarked for a pivotal U.S. clinical trial of the company's Acclaim® fully implanted cochlear implant.
CEO Brent Lucas stated the terms reflect Taylor's ongoing support and are designed to favorably position the company for its next phase.
The facility, which is unsecured and excludes equity conversion, saw Envoy Medical draw $5 million upon inception. Interest will accrue at a rate of 8% over the loan term. This financial move coincides with the company's progress in fully implanted hearing technologies, including the Esteem® active middle ear implant, the only one of its kind approved by the FDA.
Envoy Medical's Acclaim® cochlear implant, which aims to treat severe to profound sensorineural hearing loss, has received Breakthrough Designation from the FDA, indicating its potential as a first-to-market fully implanted solution.
The company also anticipates that proposed Congressional legislation could reclassify fully implanted active middle ear implants, potentially expanding patient access and fostering innovation within the sector.
The company's growth strategy includes leveraging the natural ear anatomy in its device designs, which could offer advantages over traditional hearing aids and current standard of care devices. The Acclaim® system is still under investigation and limited by U.S. law to investigational use only.
The developments at Envoy Medical are based on a press release statement and further information can be found in their Form 8-K filing.
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