CNTG - CENTOGENE Secures Approx. $20 Million to Strengthen Cash Position | Benzinga
CAMBRIDGE, Mass. and ROSTOCK, Germany, and BERLIN, May 15, 2024 (GLOBE NEWSWIRE) -- Centogene N.V. (NASDAQ:CNTG), the essential life science partner for data-driven answers in rare and neurodegenerative diseases, today announced it has entered into a set of agreements with Lifera, a biopharmaceutical company wholly-owned by the Public Investment Fund (PIF) in Saudi Arabia. The expanded relationship, which takes the form of a $15 million purchase of certain of CENTOGENE's accounts receivables (AR) and an increased investment in the parties' joint venture (JV) relationship, provides funding in aggregate of approximately $20 million to CENTOGENE to support ongoing activities and to position the Company for future growth and profitability.
"This transaction strengthens our financial position and accelerates CENTOGENE's ongoing efforts to optimize our working capital," said Kim Stratton, Chief Executive Officer at CENTOGENE. "By securing approximately $20 million, we are providing greater liquidity to support our operations, strategic initiatives, and overall mission to provide data-driven, life-changing answers to patients, physicians, and pharma companies for rare and neurodegenerative diseases. CENTOGENE is committed to achieving EBITDA breakeven by the end of this year, and we are on a very good path to achieving this target."
Transaction Details
Lifera is providing this financing on the basis of several CENTOGENE assets, such as AR and participations. In exchange, certain terms of the previously announced $30 million convertible loan provided by Lifera to CENTOGENE will be adjusted, including that it will be extended to 24 months and a portion will convert at $0.79, and CENTOGENE's equity interest in the parties' previously announced joint venture will be reduced (subject to an option to repurchase such interest in the future).
A complete description of these transactions can be found in the Current Report on Form 6-K and the Annual Report on 20-F that the Company filed today with the U.S. Securities ...