LOS ANGELES, July 7, 2022 /PRNewswire/ — Divergent Technologies Inc. (“Divergent”), the company that developed the world’s first end-to-end digital production system to revolutionize industrial-scale manufacturing, today announced the closure of ‘a new $60 million venture lending facility led by Horizon Technology Finance Corporation (NASDAQ: HRZN) (“Horizon”), and a new $20 million revolving line of credit provided by Bridge Bank, a division of Western Alliance Bank (NYSE: WAL) (“Bridge Bank”). New facilities follow success of Divergent $160 million Series C funding earlier this year.
Under the venture loan agreement, Horizon, a leading specialty finance company that provides capital in the form of secured loans to venture-backed companies in the technology, life sciences, life, health information and services and sustainability, has funded $15 million from the initial drawdown of the venture loan facility, and a private investment vehicle managed by Horizon Technology Finance Management LLC, Horizon’s advisor, funded $5 million. The subprime loan facility offers up to an additional amount $40 million funding to Divergent after reaching certain milestones.
Under the terms of the line of credit, Bridge Bank, whose Technology Banking Group provides financing solutions to venture capital-backed technology companies at all stages of their life cycle, has established a $20 million line of credit with Divergent which will use the funds for growth and working capital purposes.
Divergent is building a global manufacturing infrastructure platform for the next generation industrial economy, with a current focus on the automotive industry. Its comprehensive, state-of-the-art Divergent Adaptive Production System (“DAPS”) simultaneously helps automate the design, additive manufacturing (3D printing), and assembly of complex vehicle structures. As a result, the DAPS platform dramatically reduces development and production times, and Divergent has established a world-class pipeline of OEM customers.
“We are thrilled to receive support from Horizon and Bridge Bank as we continue to revolutionize complex industrial manufacturing, first with automotive and over time with aerospace and defense,” said Kevin Czinger, lead inventor, founder and CEO of Divergent. “DAPS for the first time enables manufacturers to forgo the capital-intensive static design system they have been accustomed to for over a century and use a variable-cost, flexible design system that is significantly more efficient. With this added efficiency, DAPS radically reduces the impact of manufacturing on the environment, making a significant contribution to global sustainability.”
“Divergent is a game-changer for vehicle manufacturing, with its end-to-end DAPS platform providing manufacturers with unmatched cost savings and flexibility,” said Gerald A. Michaud, president of Horizon. “With over 500 patent filings, DAPS is a cutting-edge approach that enables Divergent customers to create new product designs much more quickly and efficiently. We are excited to support Divergent’s growth and expansion.”
“Divergent is radically transforming the economics of automotive manufacturing and environmental impact, and it’s exciting to see Divergent deliver a solution that addresses system-level challenges,” said Mike Lederman, Senior Managing Director of Bridge Bank’s Technology Banking Group. “Divergent is reimagining the manufacturing process for the automotive industry and we are happy to help support the company’s evolution.”
BayCross Capital Group acted as placement agent on the debt (the securities portion of which was done through StillPoint Capital, LLC, member FINRA/SIPC).
Divergent harnesses additive manufacturing to unleash innovation in automotive manufacturing. Their breakthrough technology platform transforms the economic and environmental impact of designing and manufacturing complex structures such as cars. Divergent’s planet-friendly manufacturing approach can be used for mass production without expensive traditional tooling or capital expenditure, allowing manufacturers to quickly iterate and invent new vehicle designs for competitive advantage. For more information, visit www.divergent3d.com.
About Horizon Technology Financing
Horizon Technology Finance Corporation (NASDAQ: HRZN) is a leading specialty finance company that provides capital in the form of secured loans to venture-backed companies in the technology, life sciences, health information and services and sustainability. HRZN’s investment objective is to maximize the return on its investment portfolio by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when of these debt investments. Horizon Technology Finance Management LLC is headquartered in Farmington, Connecticutwith a regional office in Pleasanton, Californiaand investment professionals located in Portland, Maine, Austin, TXand Reston, Virginia. To learn more, please visit horizontechfinance.com.
About Bridge Bank
Bridge Bank, a division of Western Alliance Bank, Member FDIC, helps corporate clients realize their ambitions. Founded in 2001 in Silicon Valley, Bridge Bank provides a better way to bank for small and medium-sized businesses across many industries, as well as emerging technology companies and the private equity community. Designed to serve both venture-backed and non-venture-backed businesses, Bridge Bank offers a wide range of financial solutions, including start-up banking, capital credit facilities, equipment and working capital, venture capital debt, cash management, asset based lending, SBA and commercial real estate loans and a full range of international products and services. Situated at San Jose, Bridge Bank has 15 offices in major markets across the country, as well as the powerful range of specialized financial services of Western Alliance Bank. Western Alliance Bank is the principal subsidiary of PhoenixWestern Alliance Bancorporation, with assets of over $60 billion. Western Alliance is the second best performer of the 50 largest public U.S. banks in the S&P Global Market Intelligence list for 2021 and tops the Forbes list of “America’s Best Banks” year after year. For more information, visit Bridge Bank online.
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SOURCE Horizon Technology Finance Corporation