Agreement of new debt facility

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 Lyn Rees, Chief Executive Officer	Tel: [phone] [e-mail]
Barry Hextall, Chief Financial Officer
Joanne Cross, Director of Marketing
Cairn Financial Advisers LLP (NOMAD)	Tel: [phone]
Liam Murray / James Caithie / Ludovico Lazzaretti
Singer Capital Markets (Joint Corporate Broker)	Tel: [phone]
Aubrey Powell / Tom Salvesen / George Tzimas
Stifel Nicolaus Europe Limited (Joint Corporate Broker)		Tel: [phone]
Nicholas Moore / Matthew Blawat / Ben Maddison
Walbrook PR Ltd (Media and Investor Relations)	Tel: [phone] or [e-mail]
Paul McManus / Lianne Applegarth / Alice Woodings	Mob: [phone]

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 and follow us on twitter @Yourgene_Health.

 

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