Microbix Biosystems (TSX:MBX) has arranged a new secured revolving credit facility jointly with Toronto-Dominion Bank and Export Development Canada.
"This new credit facility provides Microbix with additional capital and financial flexibility needed to support the future growth of our molecular diagnostics controls business, under attractive, non-dilutive terms," Vaughn Embro-Pantalony, president and CEO of Microbix, said in a statement.
To accommodate the additional security required by TD Bank and EDC, the company negotiated amended terms with the two holders of its outstanding convertible debentures, in exchange for reducing their security position to one of unlimited subordination to the credit facility lenders.
"Our convertible debenture holders have demonstrated their continued support for and confidence in Microbix by giving us the flexibility to secure this new credit facility, which will help the company maintain its strong growth trajectory without diluting its stock in the manner that equivalent equity financing would entail,” Mr. Embro-Pantalony said.
The credit facility is a cost-effective source of capital that provides the necessary liquidity to build on the record sales Microbix recently reported for the fiscal 2016 fourth quarter and year, he added.