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Centogene Secures $61.8M Through Equity, Debt Financing Deals

NEW YORK — Centogene said on Tuesday that it has secured approximately $61.8 million through separate equity and debt financing transactions.

Separately, Centogene announced that its board has nominated interim CEO Kim Stratton to be the firm's permanent CEO. Stratton assumed the interim role after CEO and managing director Andrin Oswald resigned due to a medical issue.

According to the German rare disease diagnostics company, it closed a €15 million ($16.8 million) private placement financing from investors led by DPE Deutsche Private Equity, TVM Capital Life Science, and Careventures. Centogene also entered into a $45 million senior secured note facility provided by Oxford Finance.

The private placement includes the sale of 4,479,088 shares of common stock at $3.73 apiece and warrants to acquire 1,343,727 additional shares of common stock at an exercise price per share of $7.72.

Centogene said that it has drawn $25 million from the loan facility and that it will have access to a second tranche of $20 million upon the achievement of certain undisclosed conditions.

"This financing is the result of Centogene management's and its supervisory board's comprehensive review of a wider range of financial and strategic options," Centogene CFO René Just said in a statement. "Having taken all aspects into consideration and diligently addressing the financing need, we are convinced this solution maximizes the value to our stakeholders. Additionally, the debt financing minimizes dilution to our shareholders and the dual tranche structure increases our financial flexibility."

In November, Centogene reported a 17 percent year-over-year drop in third quarter revenues amid lower COVID-19 testing revenues. The company ended the third quarter with €25.7 million in cash and cash equivalents.