Horizon Technology Finance (NASDAQ: HRZN) reported Wednesday that its Horizon Platform originated $192 million in loans during the second quarter of 2022, including $137 million in loans to the firm itself. In the first quarter, the platform originated $132 million in new loans, including $73 million in new loans for HRZN. Horizon Technology (HRZN) shares are up 0.8% in after-hours trading on Wednesday.
In contrast to the $12.0M of principal prepayments in Q1 2022, the company had liquidity events from four of its portfolio companies in Q2 2022, including prepayments of $56.8M and a $0.4M of warrant and earnout proceeds. Horizon Technology Finance (HRZN) received $4.0M in regularly scheduled principal payments on investments in the second quarter compared to $1.9M in the first.
In Q2 there were new loan commitments totaling $203.4 million to 10 companies, up from $100.4 million to 11 companies in Q1. During Q2 2022, the other managed funds of Horizon Technology Finance Management (“HTFM”) closed additional loan commitments totaling $80.0M in unfunded loan approvals and commitments.
As of June 30, 2022, HRZN’s unmet loan commitments and approvals were $220,500,000 to 23 companies, compared to $158,400,000 to 20 companies as of March 31, 2022. During the quarter, HTFM received signed term sheets that are undergoing approval, which could result in the Horizon Platform providing up to $165,000,000 in additional loan investments.
Horizon Technology Finance (HRZN) raised $50 million in June via notes offering and $34 million in May via a stock sale.
Horizon Technology Finance oversees a $45 million venture loan facility for InBrace.
Horizon Technology Finance Corporation (NASDAQ: HRZN) (“Horizon”), is a leading specialty finance company that provides capital in the form of secured loans to venture capital-backed companies in the technology, life science, healthcare information and services, and sustainability industries, announced today that it has closed a $45 million venture loan facility to Swift Health Systems, Inc. (dba InBrace) (“InBrace”). Horizon funded $7 million of the initial $10 million drawdowns.
InBrace is the orthodontic firm responsible for Smartwire®, which revolutionizes the teeth-straightening process and significantly enhances the patient experience. The InBrace Smart wire is placed behind the teeth by an orthodontist, making treatment undetectable so that patients can show off their improving smiles as their teeth are realigned in real-time. The InBrace Smart wire is made from a shape-memory alloy that uses Gentleforce® technology to continuously slide teeth into place. InBrace functions similarly to autopilot and does not require the unpleasant monthly tightenings of braces or the tray changes and lifestyle nuisance of plastic aligners. Vivo Capital, Endeavour Vision Ltd, Farallon Capital Management, Marshall Wace, MVM, Novo Holdings, RTW Investments, L.P., Soleus Capital, and venBio Partners LLC are among the notable investors backing InBrace. The loan funds will be used for general business expansion and operating capital.
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