1st May 2015 07:45
LONDON (Alliance News) - Oxford Biomedica PLC said Friday that it has secured a USD50 million loan facility from Oberland Capital Healthcare, which it plans to use to held it deliver on its commitments under a manufacturing agreement with Novartis International AG, advancing its pipeline and acquiring products.
USD25 million of the facility will be drawn down immediately, with the remaining funds available to be drawn down in minimum amounts of USD5 million until the end of 2016. The loan is repayable no later than the beginning of May 2022 and can be prepaid at any time, the company said.
It will terminate its GBP5.3 million loan facility from the UK government's Advanced Manufacturing Supply Chain Initiative, and the GBP3 million it has drawn down so far will be repaid.
"With this additional access to capital we can limit shareholder dilution yet invest in our expansion plans in order to fulfil the obligations under our collaboration with Novartis and have financial flexibility for advancements of our own pipeline as well as product acquisitions," said Chief Executive John Dawson in a statement.
Shares in Oxford BioMedica are trading up 1.5% at 11.42 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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