REG - Yourgene Health PLC - Agreement of new debt facility

Yourgene HealthAnnouncement

19/01/2022 07:05

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RNS Number : 8829Y  Yourgene Health PLC  19 January 2022

 

Yourgene Health plc

("Yourgene" or the "Company")

 

Agreement of new debt facility

Silicon Valley Bank facility to provide non-dilutive funding for accretive
growth opportunities

 

Manchester, UK - 19 January 2022: Yourgene (AIM: YGEN), a leading
international molecular diagnostics group, announces the Company has entered
into a new three-year £5m term loan facility (the "Facility") with Silicon
Valley Bank ("SVB"). The Facility will provide access to non-dilutive funding
to enable the Group to capitalise on future accretive growth opportunities
including potential licensing and M&A activity, allowing for faster deal
execution and lower transaction costs.

 

The Facility is repayable over three years with an interest-only period until
April 2022 after which interest is payable at a commercially competitive
rate.  Covenants are based on a target trailing quarterly revenue basis
compared to internal forecasts. While the revenue target for testing purposes
excludes revenues from COVID-19 testing and sequencing services under the UK
National Microbiology Framework, delivery against the covenant target includes
revenue realised from these sources. The loan is secured against UK IP and
fixed assets and a first priority line over IP in the USA and Canada and
represents the only material bank debt and third party security borne by
Yourgene.

 

Nooman Haque, Head of Life Sciences and Healthcare at Silicon Valley Bank for
EMEA: "Silicon Valley Bank is delighted to be expanding its strong
relationship with Yourgene through this lending facility. This financing comes
at an exciting time for the business given its international expansion plans
underpinned by its broad range of capabilities in molecular diagnostics. We
are excited to support Yourgene at a time when the business is playing an
important role in the ongoing COVID-19 response by providing valued surge
testing and sequencing services."

 

Lyn Rees, Chief Executive Officer, commented: "The agreement secured with SVB
is a testament to the relationship we have built over a number of years,
having worked with them and their partners in multiple territories including
the USA, Canada, France, UK and Singapore. SVB has an extremely strong
franchise within the US and its strong technology focus makes it an ideal
strategic partner for Yourgene as we continue to expand within the North
American market and internationally.

 

"As stated in our Interim results, we have kept our debt capacity under review
in light of our strengthening balance sheet and this agreement allows us to
more flexibly fund future growth opportunities to drive shareholder value."

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation.

The Directors of the Company take responsibility for this announcement.

 

 Yourgene Health plc                                Tel: +44 (0)161 669 8122

 Lyn Rees, Chief Executive Officer                  investors@yourgene-health.com (mailto:investors@yourgene-health.com)
 Barry Hextall, Chief Financial Officer
 Joanne Cross, Director of Marketing

 Cairn Financial Advisers LLP (NOMAD)               Tel: +44 (0)20 7213 0880
 Liam Murray / James Caithie / Ludovico Lazzaretti

 Singer Capital Markets (Joint Corporate Broker)    Tel: +44 (0)20 7496 3000
 Aubrey Powell / Tom Salvesen / George Tzimas

 Stifel Nicolaus Europe Limited (Joint Corporate Broker)                                 Tel: +44 (0)20 7710 7600
 Nicholas Moore / Matthew Blawat / Ben Maddison

 Walbrook PR Ltd (Media and Investor Relations)     Tel: +44 (0)20 7933 8780 or yourgene@walbrookpr.com
 Paul McManus / Lianne Applegarth / Alice Woodings  Mob: 07980 541 893 / 07584 391 303 / 07407 804 654

 

 

About Yourgene Health

 

Yourgene Health is an international molecular diagnostics group which develops
integrated genomic technologies and services enabling genomic medicine. The
group works in partnership with global leaders in DNA technology to advance
diagnostic science.

 

Yourgene primarily develops, manufactures, and commercialises simple and
accurate molecular diagnostic solutions, for reproductive health, precision
medicine and now infectious diseases. The Group's flagship products include
non-invasive prenatal tests (NIPT) for Down's Syndrome and other genetic
disorders, Cystic Fibrosis screening tests, invasive rapid aneuploidy tests,
and a recent extension into the oncology space with DPYD genotyping.

 

The launch of Yourgene Genomic Services has enabled Yourgene to offer a global
laboratory service network equipped to be a full life-cycle partner for
clinical, research and pharmaceutical organisations to support partners at the
preclinical, clinical, and post-market stages to develop, manufacture, obtain
regulatory approval and commercialise new products and services. In addition,
Yourgene Genomic Services offers an NIPT and high throughput COVID testing
service.

 

In August 2020, Yourgene acquired Coastal Genomics, Inc., a sample preparation
technology company based in Vancouver, Canada, enabling the Company to extend
its offering and IP portfolio in the DNA sample preparation sector. The
acquisition increased Yourgene's geographical penetration into the US and
Canada, supplementing existing coverage in the UK, Europe, MEA and Asia.

 

Yourgene Health is headquartered in Manchester, UK with offices in Taipei,
Singapore, the US and Canada, and is listed on the London Stock Exchange's AIM
market under the ticker "YGEN". For more information visit
www.yourgene-health.com (http://www.yourgene-health.com/) and follow us on
twitter @Yourgene_Health.

 

 

 

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