Lumos Diagnostics (ASX: LDX), a leader in rapid, point-of-care diagnostic technologies, announced it has signed a binding term sheet for a A$5.0 million secured loan facility with major shareholders Tenmile Ventures Pty Ltd and Ryder Capital Management Pty Ltd. The loan will provide crucial working capital as Lumos progresses towards obtaining a CLIA waiver from the FDA for its flagship product, FebriDx®. Lumos Diagnostics specializes in rapid and complete point-of-care diagnostic test technology to help healthcare professionals more accurately diagnose and manage medical conditions. The company offers customized assay development and manufacturing services for point-of-care tests and proprietary digital reader platforms.
The company intends to extinguish the second undrawn tranche of A$4.0 million from its convertible note facility with Lind Global Fund II, LP and SBC Global Investment Fund. According to the announcement, this tranche was never used, and there are no outstanding amounts or costs associated with its extinguishment. CEO Doug Ward stated that this funding would help maintain momentum towards CLIA waiver and widespread commercialisation of FebriDx®, while limiting equity dilution for shareholders.
Drawdown of the Loan Facility is contingent on several conditions, including the execution of a definitive loan agreement. The facility has a 12-month term from the first drawdown, with an option to extend for up to an additional 12 months. The announcement follows Lumos’s recent exclusive distribution agreement with PHASE Scientific, valued at US$317 million (A$487 million), for FebriDx® in the United States, subject to achieving the CLIA waiver. The company has already received a US$1.0 million exclusivity fee.
Lumos anticipates that the loan facility proceeds, along with expected cash inflows from the PHASE Scientific agreement, will adequately fund its working capital needs until the anticipated FDA CLIA waiver for FebriDx® is granted. The company reported significant progress on the CLIA waiver study, with 105 of the targeted 120 bacterial positive patient results recorded as of July 9th. The CLIA waiver application to the FDA is expected within approximately one month of study completion, anticipated during August.
