Lumos Diagnostics (ASX: LDX), a company specialising in rapid, point-of-care diagnostic technologies, has announced a binding term sheet for a A$5.0 million secured loan facility. The agreement, signed with major shareholders Tenmile Ventures and Ryder Capital, is designed to provide working capital as Lumos pursues CLIA waiver approval from the FDA for its FebriDx® product. The loan facility is subject to customary conditions precedent, including the execution of a definitive loan agreement. All drawdowns will be at the discretion of the Company and its funding needs.
The company intends to extinguish the second unused tranche of its A$4.0 million convertible note facility with Lind Global Fund II and SBC Global Investment Fund, with no cost to the company. The security related to the convertible note agreement will also be released. The announcement follows a major partnership with PHASE Scientific, valued at US$317 million (A$487 million), including a US$1.0 million exclusivity fee already received by Lumos.
According to Lumos Diagnostics CEO Doug Ward, the funding will help maintain momentum toward CLIA waiver and commercialisation of FebriDx®, while limiting equity dilution for shareholders. The loan facility includes a 6% establishment fee and a 3% line fee, both payable in equity, as well as a 6% final payment fee payable in cash or shares. The interest rate is set at 15% per annum for the first 12 months, with potential increases upon loan extension.
The proceeds from the loan facility, combined with expected cash inflows from the PHASE Scientific distribution agreement, are expected to provide sufficient funding through to the anticipated U.S. FDA CLIA waiver granting for FebriDx®. Lumos is progressing well with its CLIA waiver study, anticipating completion during August, with an FDA application expected approximately one month after.
