NEW YORK (GenomeWeb) – Belgian molecular diagnostics company Biocartis announced today that it has taken a €40 million ($44 million) bank and lease financing facility and €15 million subordinated loan in order to finance the expansion of its manufacturing capacity for its Idylla diagnostics tests.
The company will also use part of the funds to refinance an existing loan of €5 million and to strengthen its financial position.
KBC Bank and KBC Lease are providing the bank and lease financing facility, which is partially guaranteed by the Flemish government through financing company Gigarant, Biocartis said. The facility consists of a €15 million lease financing with a five-year duration, a €15 million rollover credit line with a four-year duration, and a €10 million working capital credit line. The company specified it will use the lease financing to buy equipment for a second manufacturing line of Idylla cartridges, and will use the two lines of credit to fulfill future financing needs.
The €15 million subordinated loan comes from the Flemish Investment Company and the Belgian Federal Holding and Investment Company, and has a duration of five years. Those funds will be used to refinance the €5 million existing loan.
"The new bank facility and subordinated loan strengthen our capitalization and will further support us in realizing our ambitious growth trajectory," said CFO Ewoud Welten in a statement. "It also underlines Biocartis' ability to attract funding beyond equity capital markets from reputable debt financing partners that acknowledge our potential within the molecular diagnostics market."