NEW YORK (GenomeWeb) – Vermillion said today that it has received a $2 million disbursement of a loan totaling as much as $4 million from the Connecticut Department of Economic and Community Development.
The company plans to use the funds primarily to build its new Trumbull, Connecticut facility, which will include laboratory and information technology infrastructure.
The remaining $2 million will be disbursed if and when Vermillion meets future milestones. Additionally, Vermillion may be eligible for forgiveness of up to $2 million of the loan's principal if it meets certain job creation and retention milestones as measured by March 1, 2018.
"This loan expands our cash balance and operating runway with non-dilutive financing," Vermilion President and CEO Valerie Palmieri said in a statement. "We look forward to utilizing the proceeds from this loan to make important investments to enhance our Northeast commercialization, strategic partnerships, and leverage operating efficiencies."
The 10-year loan carries a fixed interest rate of 2 percent per year.