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Novacyt Enters €5M Convertible Bond Facility

NEW YORK (360Dx) — French diagnostics firm Novacyt said today that it has entered a convertible bond facility for up to €5.0 million ($5.6 million) with Park Partners and Negma Group.

Novacyt said it will be able to access the funding in seven tranches, and that it immediately exercised its right to an initial tranche of €2.0 million of convertible bonds with warrants. The company said that it intends to draw the additional tranches — valued at €500,000 each — over the next 36 months, but that the timing and amount of these drawdowns will depend on the proceeds from the planned sale of its Novaprep cytology business and clinical laboratory operations, as well as the receipt of capital from other sources.

"We have evaluated multiple funding options in a challenging financial market and we have completed this financing with Park Partners and Negma, which offers the least dilutive option for shareholders whilst satisfying the immediate and full working capital requirements of the business," Novacyt CEO Graham Mullis said in a statement.

Earlier this year Novacyt said that it ended 2018 with €1.1 million in cash.