NEW YORK (GenomeWeb) – CareDx said this week that it has signed agreements that restructure and extend the maturity of certain obligations related to its April 2016 acquisition of Swedish transplant diagnostics firm Allenex AB.
CareDx originally owed a deferred purchase consideration of approximately $6.3 million to the former majority shareholders of Allenex, payable on July 1. Under the terms of the amended agreements, CareDx will pay $500,000 and convert approximately $1.1 million into shares of CareDx common stock. About $2 million of the obligation will be due by Dec. 31, 2017 and may be paid in stock pending stockholder approval. Payment of the remaining $2.7 million will be deferred until March 31, 2019, along with any accrued interest.
Further, the company said, promissory notes with the former majority shareholders of Allenex worth approximately $4 million were originally due on July 1. Under the new agreements, CareDx will pay the outstanding principal amounts, plus accrued interest, on March 31, 2019.
"The restructuring of the obligations with the former majority shareholders of Allenex improves our cash position and is a significant step in strengthening our balance sheet," CareDx CFO Michael Bell said in a statement.