Horizon Technology Finance Provides Second Quarter 2022 Portfolio Update

–     Horizon Platform Originates Report $192 Million of New Loans in Q2, Together with $137 Million of New Loans for HRZN – 

–     Horizon Platform Ends Quarter with Report Dedicated Backlog of $267 Million, Together with $221 Million in HRZN Commitments –   

FARMINGTON, Conn., July 13, 2022 /PRNewswire/ — Horizon Expertise Finance Company (NASDAQ: HRZN) (“HRZN” or the “Firm”), a number one specialty finance firm that gives capital within the type of secured loans to enterprise capital backed corporations within the expertise, life science, healthcare info and companies, and sustainability industries, as we speak offered its portfolio replace for the second quarter ended June 30, 2022 and an replace on the lending platform (“Horizon Platform”) of Horizon Expertise Finance Administration LLC (“HTFM”), its funding adviser.

“The Horizon Platform generated one other record-setting quarter of originations regardless of the difficult financial atmosphere, closing $192 million of loans originated, together with $137 million of loans for HRZN,” stated Gerald A. Michaud, President of HRZN and HTFM. “As well as, the Horizon model continues to draw state-of-the-art corporations, because the Horizon Platform’s dedicated backlog grew to a report $267 million of debt investments, together with $221 million in HRZN commitments. HRZN additionally acquired $57 million in mortgage prepayments throughout the quarter, offering extra earnings and additional validating our predictive pricing technique. There stays a transparent want and demand for enterprise debt on this financial atmosphere, and we consider the Horizon Platform and HRZN stay disciplined and properly positioned to additional develop and ship extra worth to HRZN’s shareholders.”

Second Quarter 2022 Portfolio Replace

Originations

In the course of the second quarter of 2022, a complete of $192.4 million of loans funded by the Horizon Platform, together with 15 loans totaling $137.2 million funded by HRZN as follows:

• $26.0 million to an present portfolio firm, Fortress Creek Biosciences, Inc., a developer of gene therapies for sufferers with uncommon and critical genetic ailments, in reference to the prepayment of its present Horizon Platform mortgage facility and offering it with extra debt capital.
• $15.0 million to a brand new portfolio firm, Divergent Applied sciences Inc., a creator of an revolutionary international manufacturing infrastructure platform for the automotive trade.
• $12.5 million to a brand new portfolio firm, a clinical-stage firm targeted on decoding all the genome to determine optimum gene targets to treatment oncology and autoimmune ailments.
• $12.5 million to an present portfolio firm, NextCar Holding Firm, Inc. (dba Autonomy), an internet platform providing vehicles to customers on a subscription foundation.
• $10.0 million to a brand new portfolio firm, a developer of a breathalyzer check to detect latest hashish use.
• $10.0 million to an present portfolio firm, IMV Inc. (NASDAQ: IMV), a clinical-stage biopharmaceutical firm growing a brand new class of most cancers immunotherapies and infectious illness vaccines.
• $10.0 million to an present portfolio firm, Nexii Constructing Options Inc., a inexperienced development firm that designs and manufactures low carbon buildings and merchandise.
• $7.5 million to a brand new portfolio firm, Engage3, LLC, a developer of value optimization software program that permits retailers and types to profitably develop income and drive extra retailer journeys.
• $7.5 million to a brand new portfolio firm, a developer of revolutionary medical units and therapies to deal with the evolving wants of interventional specialists.
• $7.5 million to an present portfolio firm, Soli Natural Inc., a number one grower and marketer of contemporary natural culinary herbs, offering sustainable, USDA-certified natural, regionally grown produce to retailers.
• $7.0 million to a brand new portfolio firm, Swift Well being Programs, Inc. (dba InBrace), a developer of tooth straightening expertise that gives a substitute for conventional braces and aligners.
• $5.0 million to an present portfolio firm, Emalex Biosciences, Inc., a clinical-stage biopharmaceutical firm targeted on growing remedies for central nervous system motion issues and fluency issues.
• $3.75 million to a brand new portfolio firm, a developer of subsequent technology microbial options for each companion and livestock animals.
• $2.5 million to an present portfolio firm, Safe Transfusion Providers, Inc., an operator of business blood assortment facilities that supply and distribute important, in-demand blood parts to hospitals.
• $0.4 million to an present firm, MacuLogix, Inc., a medical gadget firm within the optometry and ophthalmology trade.

Liquidity Occasions

HRZN skilled liquidity occasions from 4 portfolio corporations within the second quarter of 2022, together with principal prepayments of $56.8 million and $0.4 million of warrant and earnout proceeds, in comparison with $12.0 million of principal prepayments throughout the first quarter of 2022: 

• In April, with the proceeds of a brand new mortgage from the Horizon Platform, Fortress Creek Biosciences, Inc. pay as you go its beforehand excellent principal stability of $25.0 million on its enterprise mortgage facility, plus curiosity and end-of-term cost. HRZN continues to carry warrants within the firm.
• In Could, Updater, Inc. pay as you go its excellent principal stability of $19.3 million on its enterprise mortgage, plus curiosity, end-of-term cost and prepayment payment. HRZN continues to carry warrants within the firm.
• In June, IDbyDNA, Inc. was acquired by Illumina, Inc. and pay as you go its excellent principal stability of $12.5 million on its enterprise mortgage, plus curiosity, end-of-term cost and prepayment payment. HRZN additionally acquired proceeds totaling $0.3 million from the redemption of warrants it held within the firm.
• In June, HRZN earned a $0.1 million earnout cost associated to its funding in Bardy Diagnostics, Inc.

Principal Funds Obtained

In the course of the second quarter of 2022, HRZN acquired recurrently scheduled principal funds on investments totaling $4.0 million, in comparison with recurrently scheduled principal funds totaling $1.9 million throughout the first quarter of 2022.

Commitments

In the course of the quarter ended June 30, 2022, HRZN closed new mortgage commitments totaling $203.4 million to 10 corporations, in comparison with new mortgage commitments of $100.4 million to 11 corporations within the first quarter of 2022. HTFM’s different managed funds, throughout the quarter, closed new mortgage commitments totaling $80.0 million of unfunded mortgage approvals and commitments.

Pipeline and Time period Sheets

As of June 30, 2022, HRZN’s unfunded mortgage approvals and commitments (“Dedicated Backlog”) had been $220.5 million to 23 corporations. This compares to a Dedicated Backlog of $150.8 million to twenty corporations as of March 31, 2022. HRZN’s portfolio corporations have discretion whether or not to attract down such commitments and the best of a portfolio firm to attract down its dedication is commonly topic to achievement of particular milestones and different situations to borrowing.  Accordingly, there is no such thing as a assurance that all or any of those transactions might be funded by HRZN. HTFM’s different managed funds ended the quarter with a complete of $46.5 million of unfunded mortgage approvals and commitments.

In the course of the quarter, HTFM acquired signed time period sheets which can be within the approval course of, which can outcome within the Horizon Platform offering as much as an combination of $165.0 million of latest debt investments.  These alternatives are topic to underwriting situations together with, however not restricted to, the completion of due diligence, negotiation of definitive documentation and funding committee approval, in addition to compliance with HTFM’s allocation coverage. Accordingly, there is no such thing as a assurance that all or any of those transactions might be accomplished or funded by HRZN.

Warrant and Fairness Portfolio

As of June 30, 2022, HRZN held a portfolio of warrant and fairness positions in 90 portfolio corporations, together with 76 personal corporations, which gives the potential for future extra returns to HRZN’s shareholders.

About Horizon Expertise Finance

Horizon Expertise Finance Company (NASDAQ: HRZN) is a number one specialty finance firm that gives capital within the type of secured loans to enterprise capital backed corporations within the expertise, life science, healthcare info and companies, and sustainability industries. The funding goal of HRZN is to maximise its funding portfolio’s return by producing present earnings from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon Expertise Finance Administration LLC is headquartered in Farmington, Connecticut, with a regional workplace in Pleasanton, California, and funding professionals situated in Portland, Maine, Austin, Texas, and Reston, Virginia. To be taught extra, please go to www.horizontechfinance.com.

Ahead-Trying Statements

Statements included herein might represent “forward-looking statements” throughout the which means of the Non-public Securities Litigation Reform Act of 1995. Statements aside from statements of historic details included on this press launch might represent forward-looking statements and will not be ensures of future efficiency, situation or outcomes and contain various dangers and uncertainties. Precise outcomes might differ materially from these within the forward-looking statements on account of various components, together with these described every so often in Horizon’s filings with the Securities and Alternate Fee. Horizon undertakes no responsibility to replace any forward-looking assertion made herein. All forward-looking statements converse solely as of the date of this press launch.

Contacts:

Investor Relations:
ICR
Garrett Edson
[email protected]
(860) 284-6450

Media Relations:
ICR
Chris Gillick
[email protected] 
(646) 677-1819

SOURCE Horizon Expertise Finance Company