Facing the threat of bankruptcy, weight-loss startup Calibrate was forced to make a tough deal with private equity firm Madryn Asset Management, according to company documents reviewed by Insider.
Under the terms of the deal, Madryn took a 70% stake in Calibrate in exchange for just $20 million, the documents show.
Calibrate, Madryn, Kenyon, and the company's VC backers didn't immediately return messages seeking comment for this story.
Some longtime patients have regained much of the weight they lost after Calibrate failed to get them medications, Insider reported on Thursday.
Under the deal, Madryn exchanged $20 million of its loans for senior equity in Calibrate.
Persons:
Madryn, Isabelle Kenyon, She's, Kenyon, didn't, Fortune, Michael Siluk, They're
Organizations:
Asset, Tiger Global, Founders Fund, Optum Ventures, Madryn, Tiger, Getty, Owners, LinkedIn
Locations:
Madryn