Spectral Medical Secures Up to $10M Non-Dilutive Financing with Vantive

Spectral Medical Inc., a late-stage theranostic company developing treatments for sepsis and septic shock, has announced a significant financial agreement with Vantive US Healthcare LLC. This agreement involves a senior secured promissory note allowing Spectral to access non-dilutive funding of up to $10 million. The funding is intended to facilitate the commercialization of Toraymyxin™ (PMX), a blood filtration therapy designed to remove endotoxins linked to sepsis from the bloodstream.

Under the terms of the agreement, Vantive will provide funds in up to four separate tranches. The first tranche, valued at $4 million, was triggered on May 6, 2025, following the signing of the agreement. The criteria for the remaining tranches are stipulated in the agreement as filed on SEDAR+.

The promissory note has a maturity of four years and entails a Payment-in-Kind (PIK) interest at an annual rate of 9%. Both the principal balance and the PIK interest are due at the maturity date. Notably, the promissory note does not include any conversion rights into Spectral's securities.

With this financial backing, Spectral anticipates meeting key goals without needing further funding. These milestones include releasing topline results, submitting documents to the U.S. FDA, and advancing toward PMX commercialization.

Chris Seto, CEO of Spectral, expressed gratitude for Vantive's partnership, emphasizing that the funding arrangement not only provides essential non-dilutive financing but also reflects the strong relationship between the two companies. Paradigm Capital Inc. served as Spectral's financial advisor for this transaction.

The company plans to host a corporate update call on May 15, 2025, featuring Chris Seto and Dr. John Kellum, Chief Medical Officer. This call will include a question-and-answer session and is open to all interested parties.

Spectral's PMX device is a therapeutic hemoperfusion product targeting endotoxins in the bloodstream, which can lead to sepsis. The device works in conjunction with the FDA-cleared Endotoxin Activity Assay (EAA™), a blood test for endotoxin levels. PMX has been approved for use in Japan and Europe, with over 360,000 treatments performed to date. Spectral acquired exclusive development and commercialization rights for PMX in the U.S. in 2009 and entered an exclusive distribution agreement for Canada in 2010.

In July 2022, the U.S. FDA granted PMX a Breakthrough Device Designation for treating endotoxic septic shock. Each year, approximately 330,000 people in North America are diagnosed with septic shock. Spectral's Tigris Trial, a confirmatory study of PMX, is currently underway. This trial is a 2:1 randomized study involving 150 patients and uses Bayesian statistics to compare PMX plus standard care against standard care alone.

Spectral Medical Inc. is publicly traded on the Toronto Stock Exchange under the symbol EDT.