STRATA Skin Sciences, Inc. Announces Successful Completion of Debt Refinancing

STRATA Skin Sciences, Inc. (SSKN) (“STRATA” or the “Company”), a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, today announced that it has closed a refinancing of its existing debt with a lower interest one-year cash-secured loan facility with Israel Discount Bank of New York, a multi-national commercial bank.

The new loan, at a fixed interest rate of 2.79%, significantly lowers the Company’s interest expense for 2020.  The proceeds of the new loan facility were used to repay the Company’s outstanding term note with MidCap Financial.

Dr. Dolev Rafaeli, the Company’s President and CEO stated, “This refinancing and new commercial bank loan facility is a testament to our financial strength and ability to generate cash flow. With it, we are able to significantly lower our cost of capital and increase our operational flexibility. Additionally, this refinancing allows the Company to be opportunistic in its strategic plans. We look forward to continuing to execute on our strategy of expanding our install base and investing in direct-to-consumer marketing of XTRAC.”

About STRATA Skin Sciences, Inc.  

STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions. Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; and the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation.

The Company’s proprietary XTRAC® excimer laser delivers a highly targeted therapeutic beam of UVB light to treat psoriasis, vitiligo, eczema, atopic dermatitis and leukoderma, diseases which impact over 35 million patients in the United States alone. The technology is covered by multiple patents, including exclusive rights for patents for the delivery of treatment to vitiligo patients.

STRATA’s unique business model leverages targeted Direct to Consumer (DTC) advertising to generate awareness and utilizes its in-house call center and insurance advocacy teams to increase volume for the Company’s partner dermatology clinics.

The XTRAC business has used this proven DTC model to grow its domestic dermatology partner network to over 784 clinics, with a worldwide installed base of over 2,000 devices. The Company is able to offer 90% of DTC patients an introduction to physicians prescribing a reimbursable solution, using XTRAC, within a 10-mile radius of their house. The Company is a leader in dermatology in-clinic business generation for its partners.