Novacyt SA: Early settlement of the term loan and convertible bond facility removes long-term debt
PARIS & CAMBERLEY, England – (COMMERCIAL THREAD) – Regulatory news:
(“Novacyt”, the “Company” or the “Group”)
Novacyt (EURONEXT GROWTH: ALNOV; AIM: NCYT), an international specialist in clinical diagnostics, announces the settlement of all of its debts with Harbert European Growth Capital (“HEGC”) and Vatel Capital SAS (“Vatel”).
Under the terms of these agreements, Novacyt will clear its debts to HEGC and Vatel before the end of June 2020. In doing so, it will settle a total of € 7.0 million of debt in principal provided by the two lenders.
The HEGC guaranteed term loan of 5.0 million euros, announced on November 6, 2019, has a fixed interest rate of 11% per annum and is repayable over 48 months with an initial interest-only period of 12 months followed by 36 equal monthly interest and principal payments. HEGC has taken a first charge on the assets of UK companies with a pledge on Novacyt, which will be satisfied upon full repayment of € 6.1m, including € 5.0m of capital, during the month of June 2020 .
In May 2018, Novacyt entered into an unsecured convertible bond loan with Vatel for an amount of € 4.0 million, repayable over three years at an interest rate of 7.4%. Pursuant to a restructuring agreement with Vatel, announced on November 6, 2019, the interest rate was retrospectively increased to 8.9% (effective July 31, 2019) and the loan term was extended by 12 months until May 2022 in order to reduce the annual payments to Vatels. The bond also carries a 0.1% non-conversion premium when monthly repayments are made in cash.
Vatel has exercised its right to request the conversion of all outstanding debts into new ordinary shares of € 1/15 each of the Company (“Ordinary Shares”) at a fixed conversion price of € 0.70 per Ordinary Share. As a result, the remaining debt of € 2,066,257 was converted into 2,952,681 Ordinary Shares. No future or accrued interest is payable as a result of this conversion.
Vatel has agreed to a retention period for a number of Ordinary Shares, according to which 1,107,255 Ordinary Shares will not be sold or transferred until December 31, 2021, and 1,033,438 additional Ordinary Shares will not be sold or transferred before March 31, 2021. The remaining 811,988 shares have no such restrictions.
The early settlement of the HEGC loan is funded by general cash. As of June 2, 2020, before payment to HEGC, the Group had net cash of € 25 million (cash as of December 31, 2019 of € 1.8 million).
Admission to Trading & Total Voting Rights
An application will be made for the admission of 2,952,681 new Ordinary Shares to trading on AIM (“Admission”) and the Admission is expected to become effective at 8:00 am on or around June 9, 2020. Admission of the new Ordinary Shares to trading on AIM trading on Euronext is expected to take place no later than June 9, 2020.
Following the Admission, the total number of Company shares is 70,626,248. This figure may be used by shareholders as a denominator for the calculations by which they will determine whether they are required to declare their participation or a modification of their participation in the Company in application of article L. 233-7 of the Commercial Code. . and the Articles of Association of the Company.
Graham Mullis, CEO of Novacyt, said:
“We are pleased to announce the early settlement of all outstanding debts of Novacyt, which has been made possible by the strong cash generation of the company so far in 2020. With significant order commitments and raw materials acquired for our COVID-19 test, and expected new product revenues, we expect the strong cash generation to continue. I would like to thank HEGC and Vatel for supporting Novacyt during this period.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
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About the Novacyt Group
The Novacyt Group is an international diagnostic company generating a growing portfolio of in vitro and molecular diagnostic tests. Its main strengths lie in the development, marketing, design and manufacture of diagnostic products. The main business units of the Company include the Primerdesign and Lab21 products, providing a wide range of high quality assays and reagents worldwide. The Group directly serves the microbiology, hematology and serology markets as well as its global partners, including large companies.
For more information, please visit the website: www.novacyt.com