By Devika Patel
Knoxville, Tenn., Sept. 4 – Chembio Diagnostics, Inc. settled a $20 million four-year term loan with an affiliate of Perceptive Advisors, according to a press release.
The loan accrues interest at 875 basis points plus the greater of the one-month Libor and 250 bps.
Perceptive Advisors also received warrants for 550,000 common shares. The warrant is exercisable at $5.22 for seven years. The strike price equals the 15-day volume weighted average price of the common stock as of the day before closing.
Proceeds will be used for commercialization, research and development and preparing for additional growth.
Based in Medford, N.Y., Chembio develops and manufactures test products for HIV, tuberculosis and mad cow disease.
| Issuer: | Chembio Diagnostics, Inc.
|
| Issue: | Term loan
|
| Amount: | $20 million
|
| Maturity: | Four years
|
| Coupon: | 875 bps plus the greater of one-month Libor and 250 bps
|
| Warrants: | For 550,000 shares
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $5.22
|
| Investor: | Perceptive Advisors
|
| Settlement date: | Sept. 4
|
| Distribution: | Private placement
|
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