JERSEY, Channel Islands, Aug. 3, 2015 (GLOBE NEWSWIRE) -- Quotient Limited (NASDAQ:QTNT), a commercial-stage diagnostics company, today announced it had entered into an amended agreement with MidCap Financial ("MidCap") to increase its existing term credit facility from $15 million to up to $50 million (the "New MidCap Facility"). 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 MidCap 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.
The New MidCap Facility will be repayable in 30 equal installments, commencing on March 1, 2018 (or 24 equal installments commencing on September 1, 2018, if the Company achieves CE Mark approvals for the MosaiQTM instrument and blood grouping consumable). 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%.
The Company has also granted an affiliate of MidCap warrants to subscribe for 111,525 new ordinary shares in the Company at an exercise price of $16.14 per ordinary share. Further warrants will be granted to the MidCap affiliate in connection with each subsequent drawdown of funds by the Company under the New MidCap Facility for new ordinary shares equal to 6% of the drawdown amount based on the market price of the Company's ordinary shares at the time of grant.
"This incremental funding provided by MidCap bolsters our available capital resources as we continue the commercial scale-up efforts for MosaiQTM," said Paul Cowan, Chairman and Chief Executive Officer 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."
Additional details regarding this transaction will be made available in a Current Report on Form 8-K to be filed by Quotient with the Securities and Exchange Commission.
About Quotient Limited
Quotient Limited (together with its subsidiaries, "Quotient" or the "Company") is an established, commercial-stage diagnostics company committed to reducing healthcare costs and improving patient care through the provision of innovative tests within established markets. With an initial focus on blood grouping and serological disease screening, Quotient is developing its proprietary MosaiQTM technology platform to offer a breadth of tests that is unmatched by existing commercially available transfusion diagnostic instrument platforms. The company's operations are based in Edinburgh, Scotland; Newtown, Pennsylvania; and Eysins, Switzerland.
About MidCap Financial
MidCap Financial is a middle market-focused, specialty finance firm that provides senior debt solutions to businesses across all industries. The firm's years of experience, strong balance sheet, and flexibility make it a lender of choice for companies across all stages of growth and complexity. MidCap Financial refers to MidCap FinCo Limited, a private limited company domiciled in Ireland, and its subsidiaries. MidCap Financial is managed by Apollo Capital Management, L.P., a subsidiary of Apollo Global Management, LLC (NYSE:APO). Apollo Global Management is one of the world's leading alternative investment managers with approximately $163 billion of assets under management (as of March 31, 2015), providing market leading industry expertise, market reach, and financing synergies.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our expectations regarding our use of the proceeds from the New Midcap Facility. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are beyond our control, include the risks set forth in the company's filings with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Quotient disclaims any obligation to update these forward-looking statements.
CONTACT: Stephen Unger, Chief Financial Officer firstname.lastname@example.org (212) 228-7572