NEW YORK (GenomeWeb) – HTG Molecular Diagnostics said today that it has entered into a senior debt facility with MidCap Financial worth up to $30 million.
The debt facility consists of an initial $7 million term loan, which HTG will use to pay off an existing senior credit facility with Oxford Finance and Silicon Valley Bank. It also gives HTG access to an additional $13 million through September 2019 subject to certain conditions, including the first commercial sale of an FDA-approved diagnostic assay developed under HTG's alliance with Qiagen.
The loan facility also includes an additional $2 million revolving line of credit that is expandable to up to $10 million. It has a term of five years, with interest-only payments for the first two years.
"This agreement provides flexible, non-dilutive financial capacity as we look to accelerate our strategies," HTG President and CEO TJ Johnson said in a statement. The initial funding of the term loan is expected to give the company approximately $2 million in additional cash resources through early 2019, HTG CFO Shaun McMeans added.