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Novacyt Secures $5.5M Loan

NEW YORK — French diagnostics firm Novacyt said on Wednesday that it has signed an agreement for a €5.0 million ($5.5 million) secured loan.

The loan is being provided by Harbert European Growth Capital (HEGC). Under the terms of the deal, the four-year loan has a fixed 11 percent annual interest rate and HEGC will receive warrants for around 6 million shares of Novacyt, representing 8.5 percent of the principal loan amount.

Novacyt said the money will be used to repay €1.2 million in bonds under a 2016 deal with Kreos Capital; pay the balance of an €800,000 tied to its acquisition of PCR firm Primerdesign; and repay €900,000 in unconverted debt under a convertible bond facility signed with Negma Group. About  €2.0 million will go toward 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," Novacyt CEO Graham Mullis said in a statement.