Novacyt trading in line as it seeks fresh funding

Clinical diagnostics specialist Novacyt updated the market on its current position and funding plans on Tuesday, confirming that 2019 trading had started positively and was in line with 2019 management expectations.

The AIM-traded firm said it was also continuing to make progress with the ongoing negotiations in relation to the sale of the ‘NOVAprep’ and the Clinical Lab businesses, and would continue to update the market as the transactions progressed.

It said its cash position as at 22 February was approximately €0.95m, which was ahead of plan, with the board saying it was currently in advanced discussions with debt providers in relation to a material investment, of which it said a “significant proportion” would be used to consolidate its current debt obligations.

“The company expects to complete this financing within the next six to eight weeks,” the board said in its statement.

“Although there can be no guarantee in respect of the amount that can be raised, the preference of the company is to target the raising of funds in the least dilutive form for shareholders.

“Further announcements will be made as appropriate in due course.”