Paris, France and Camberley, UK – 6 November 2019 – Novacyt (ALTERNEXT: ALNOV; AIM: NCYT), an international specialist in clinical diagnostics, announces it has agreed a €5.0m four-year term loan. The funds will be used for the repayment of certain outstanding loans, working capital and the immediate settlement of its entire convertible bond facility.
This new debt financing of €5.0m (€4.9m net of fees) has been provided by Harbert European Growth Capital (“HEGC”). These funds will be used to immediately reduce certain balance sheet liabilities and provide significant working capital for the Group. The funding also means that the €5.0m convertible bond facility provided by Negma Group Ltd (“Negma”), announced on 23 April 2019 has been terminated. Of the €2.0m drawn down to date, €0.7m was unconverted and will be redeemend in cash. The remaining €3.0m of the original facility was not drawn down and has now been cancelled.
Graham Mullis, CEO of Novacyt, commented:
“The financing completed with HEGC is excellent news for the Company, its shareholders, creditors and employees. We have continued to experience increasing demand for our products throughout 2019, which led to 12% growth in sales in H1, however, trading from the second quarter through to today has been directly impacted by low levels of working capital. This new financing addresses the working capital constraints and also removes the requirement for further drawdowns of the dilutive Negma convertible bond facility. I would like to express my thanks to Kreos, Vatel and the former shareholders of Primerdesign who have supported the Company through to the successful completion of this refinancing.
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