Biocartis attracts EUR 55 million non-dilutive financing

(PresseBox) ( Mechelen, Belgium, )
Biocartis Group NV ('Biocartis'), an innovative molecular diagnostics company (Euronext Brussels: BCART), today announces that it has attracted a total of EUR 55m of non-dilutive financing, consisting of a EUR 40m bank and lease financing facility and a EUR 15m subordinated loan. The funds will be used to finance the expansion of Biocartis' manufacturing capacity for its IdyllaTM diagnostics tests, to refinance an existing loan of EUR 5m and to strengthen the company's financial position to continue to execute its strategic plan.

The bank and lease financing facility is provided by KBC Bank and KBC Lease and includes a partial guarantee by the Flemish Government through Gigarant, managed the Flemish Investment Company 'ParticipatieMaatschappij Vlaanderen' (PMV). The new subordinated loan is provided by a consortium of PMV and the Belgian 'Federal Holding and Investment Company' (FPIM).

Commenting on the new financings, Ewoud Welten, Chief Financial Officer of Biocartis, said:

"The new bank facility and subordinated loan strengthen our capitalisation and will further support us in realising our ambitious growth trajectory. 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. We are pleased with the continued support of KBC and PMV and much welcome FPIM and Gigarant as new partners."

Bank and lease financing facility

The bank and lease financing facility provided by KBC consists of three tranches:

EUR 15m lease financing;
EUR 15m rollover credit line; and
EUR 10m working capital credit line.

The lease financing will be used to fund the equipment of a second Idylla(TM) cartridge manufacturing line that Biocartis ordered end of 2015. Furthermore, the two lines of credit that Biocartis now has at its disposal can be used to fulfil certain future financing needs in, amongst others, working capital. Both lines of credit are partially guaranteed by Gigarant.

The lease financing has a five year duration and the rollover credit line a four year duration. The working capital credit line is provided until further notice.

Wim Eraly, Senior General Manager KBC Bank, added: "KBC is dedicated to support highly innovative companies such as Biocartis, which we underlined today with this new financing facility. We have been a long term partner to Biocartis and look forward to further support the company in realising its ambition to disrupt the global molecular diagnostics market."

Subordinated loan

The new EUR 15m subordinated loan provided by PMV and FPIM has a duration of five years. Part of the proceeds from this loan will be used to refinance the company's current subordinated loan of EUR 5m (excluding accrued interest charges) that is due end of 2016.

Roald Borré, Head of Equity Investments of PMV, added: "We are pleased to play an important role in the further financing of Biocartis' business. Enabling companies like Biocartis to be successful positively impacts the Belgian economy in terms of employment and growth of local knowledge. Both being elements that FPIM and PMV actively want to support."

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