Novacyt has obtained a €5 million ($5.5 million) four-year term loan from Harbert European Growth.
The funds will be used for the repayment of certain outstanding loans, working capital and the immediate settlement of its entire convertible bond facility.
The funding also means that the €5 million convertible bond facility provided by Negma announced on 23 April 2019 has been terminated. Of the €2 million ($2.2 million) drawn down to date, €0.7m was unconverted and will be redeemed in cash. The remaining €3 million ($3.3 million) of the original facility was not drawn down and has now been cancelled.
“The financing completed with HEGC is excellent news for the company, its shareholders, creditors and employees. This new financing addresses the working capital constraints and also removes the requirement for further drawdowns of the dilutive Negma convertible bond facility,” said Graham Mullis, CEO of Novacyt._x000D_
The Novacyt Group is an international diagnostics business generating an increasing portfolio of in vitro and molecular diagnostic tests.
Since 2014, Harbert European Growth Capital has been providing specialty debt financing to more than 100 European, growth-stage, technology and life science businesses.
