Envoy Medical draws $5 million from credit line, issues warrant to GAT Funding

Envoy Medical (TASE:BLWV), Inc. (NASDAQ:COCH) announced Wednesday that it has drawn the remaining $5 million of principal available under a promissory note with GAT Funding, LLC. The draw occurred on Thursday of last week. The micro-cap company, currently valued at $32.1 million, has been facing financial headwinds with negative EBITDA of $19.28 million in the last twelve months.

GAT Funding is controlled by Glen Taylor, who serves on Envoy Medical’s board of directors and is the company’s controlling stockholder. The promissory note was originally dated March 6, 2025.

As a commitment fee for the additional draw, Envoy Medical issued GAT Funding a warrant to purchase 750,000 shares of its Class A Common Stock at an exercise price of $1.48 per share, which matches the closing price of the stock on the date of the draw. The warrant has a two-year exercise period.

The shares underlying the warrant were issued in a private transaction, relying on exemptions from registration provided by Section 4(a)(2) of the Securities Act of 1933 and Rule 506 of Regulation D.

Envoy Medical’s Class A Common Stock and redeemable warrants are listed on the Nasdaq Stock Market under the symbols COCH and COCHW, respectively.

This information is based on a statement in the company’s recent SEC filing.

In other recent news, Envoy Medical has made several noteworthy announcements. The company reported a significant advancement in its clinical trial for the Acclaim® cochlear implant, with successful activation in all 10 participants in the initial phase. This device, which has received Breakthrough Device Designation from the FDA, is aimed at helping individuals with severe sensorineural hearing loss. Additionally, Envoy Medical disclosed a change in its executive team, as David R. Wells is no longer serving as Chief Financial Officer, with CEO Brent T. Lucas assuming the role on an interim basis. Robert Potashnick has been appointed as interim CFO, serving through a consulting agreement with Oasis Business Consulting. Moreover, Envoy Medical announced its Annual Meeting of Stockholders will be held on May 28, 2025, in Vadnais Heights, Minnesota. Shareholders of record as of April 8, 2025, will be eligible to vote, and the company has set an April 20, 2025, deadline for shareholder proposals or director nominations. These developments are part of Envoy Medical’s ongoing efforts to advance its business and engage with its shareholders.

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