Quotient Limited, a commercial-stage diagnostics company, entered into an amended agreement with MidCap Financial to increase its existing term credit facility up to $50 million.

Quotient and MidCap originally entered into a $15 million term credit facility on December 6, 2013. New funding of $15 million will be made immediately available to Quotient under the new facility for working capital purposes.

The remaining $20 million will be made available, subject to certain conditions, following receipt of CE-Marking for MosaiQ ($5.0 million) and upon first commercial sale of MosaiQ in Europe ($15 million) and will be used to fund working capital requirements following the commercial launch of MosaiQ. Subject to the satisfaction of the applicable conditions, the initial $5.0 million drawdown must be made prior to January 31, 2017 and the subsequent $15 million drawdown must be made prior to June 30, 2017.

Interest will be payable monthly in arrears at an annual rate equivalent to one-month LIBOR plus 6.7%, subject to a LIBOR floor of 2.0%.

“This incremental funding provided by MidCap bolsters our available capital resources as we continue the commercial scale-up efforts for MosaiQ,” said Paul Cowan, chairman and CEO of Quotient. “In addition, we see this as a positive, minimally dilutive way to lower our overall cost of capital, while extending our near-term cash runway. We are pleased to again partner with MidCap and thank them for their continued confidence in our business.”