Senseonics (NYSE:SENS) announced today that it entered into a $50 million loan facility with Hercules Capital.

The Germantown, Maryland-based long-term, implantable continuous glucose monitor (CGM) maker drew $25 million upon closing.

Senseonics CFO Rick Sullivan said the facility provides increased financial flexibility for the company. It looks to continue collaborating with Ascensia Diabetes Car to build its Eversense CGM brand and drive global adoption. Recent highlights for the company include the submission of the Eversense CGM system to the FDA for an iCGM designation. Analysts expect this approval to integrate the system with insulin delivery systems to come in 2024.

“This year, we have made significant progress simplifying the company’s capital structure and extending the maturation of our debt to support our growth plans,” Sullivan said in a news release. “The Hercules loan facility strengthens our balance sheet on a non-dilutive basis and is currently expected to provide the capital required to fund our current operating plans to cash flow positivity.”

The loan facility provides for up to $50 million in term loans available in multiple tranches. In addition to the initial $25 million draw, Senseonics may draw an additional tranche of up to $10 million. This may occur for a period of time after achieving revenue milestones.

Senseonics has an additional tranche available for up to $15 million following additional revenue and gross margin milestones. Additionally, the availability of each tranche remains subject to certain conditions. Senseonics is under no obligation to draw funds in the future.

“We are encouraged by the company’s recent progress in expanding their commercial footprint, increasing coverage, and advancing their product pipeline and look forward to their next phase of growth,” said Bryan Jadot, senior managing director and life sciences group head at Hercules.