NEW YORK (GenomeWeb News) – Helicos Biosciences will use a $20 million senior secured credit facility from GE Healthcare Financial Services to shore up its working capital and to fund commercialization efforts, the company said today.
The company received an initial $10 million under the facility on Dec. 31, and it will be able to draw down the remaining $10 million through the end of June. The first $10 million will be amortized over 36 months, and Helicos will owe interest-only payments over the initial 12 months.
Helicos, which went public in May 2007, said in its November earnings report that it was surviving on minimal revenue from grants while it amped up its R&D spending and took a $10 million net loss for the third quarter.
Helicos CEO Steve Lombardi said in a statement that the loan will allow the company to “scale up our manufacturing and build inventory to meet customer demand in 2008 and beyond.”
The firm expects to soon launch its HeliScope next-generation sequencing instrument.