Trinity Biotech Announces the Successful Closing of its Strategic Investment and Partnership With The MiCo Group of South Korea
May 03 2022 - 6:50PM
Trinity Biotech plc (Nasdaq: TRIB), a leading developer and
manufacturer of diagnostic products for the point-of-care and
clinical laboratory markets, today announced that it has closed its
recently announced strategic investment with the MiCo Group.
Refinancing
On Tuesday, May 3, 2022, the Company
successfully closed an approximately $45 million strategic
investment and partnership with MiCo Ltd (“MiCo”). MiCo, a
KOSDAQ-listed and Korea-based company, is engaged in the biomedical
business through its affiliate MiCo BioMed, in addition to
providing cutting-edge technology driven solutions in the
semi-conductor and green energy sectors.
The investment consists of approximately 11.2
million ADSs at a price of $2.25 per ADS and a seven-year,
unsecured junior convertible note in the amount of $20 million,
with a fixed interest rate of 1.5% and an ADS conversion price of
$3.24 per ADS. The convertible note mandatorily converts into ADS
if the volume weighted average price of the Company’s ADSs is at or
above $3.24 for any five consecutive NASDAQ trading days.
These funds will be primarily used to repay a
portion of the Company’s $81.25 million term loan, which is
expected to reduce the Company’s annual interest cost by
approximately $4 million each year. The Company also expects that
this investment will facilitate its exploration of lower cost
debt funding options in the short term, with the aim of further
reducing the Company’s interest expense through refinancing the
balance of the Company’s term loan at substantially lower interest
rates.
Commenting on the closing of the transaction,
Ronan O’Caoimh, Chief Executive Officer stated, “We are delighted
to close the $45 million investment from MiCo Group, at a
significant premium to our current ADS price, and are excited to
work with the MiCo team in our future alliance. I would like to
welcome Sun-Q Jeon to our board as Chairman, and our two other new
board members, Aris Kekedjian and Michael Sung Soo Kim”.
Commenting on the closing of the transaction,
John Gillard, Chief Financial Officer stated, “We are very excited
to close the equity and convertible debt investments by the MiCo
Group. We believe this investment will substantially transform the
capital structure of Trinity Biotech and will facilitate our
executing on the exciting organic and inorganic opportunities open
to us at this time of significant disruption in the diagnostics
industry. We look forward to working with Sun-Q, Aris, Michael and
the wider MiCo team to drive the growth of Trinity Biotech into the
future”.
Certain statements made in this release that are not historical
are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The words “estimate”,
“project”, “intend”, “expect”, “believe” and similar expressions
are intended to identify forward-looking statements. These
forward-looking statements involve known and unknown risks and
uncertainties. Many factors could cause the actual results,
performance or achievements of Trinity Biotech to be materially
different from any future results, performance or achievements that
may be expressed or implied by such forward-looking statements,
including, but not limited to, the results of research and
development efforts, risks associated with the outbreak and global
spread of the coronavirus (COVID-19), the effect of regulation by
the U.S. Food and Drug Administration and other agencies, the
impact of competitive products, product development
commercialization and technological difficulties. For additional
information regarding these and other risks and uncertainties
associated with Trinity Biotech’s business, reference is made to
our reports filed from time to time with the U.S. Securities and
Exchange Commission. We undertake no obligation to update or revise
any forward-looking statements for any reason.
Trinity Biotech develops, acquires, manufactures
and markets diagnostic systems, including both reagents and
instrumentation, for the point-of-care and clinical laboratory
segments of the diagnostic market. The products are used to detect
infectious diseases and to quantify the level of Haemoglobin A1c
and other chemistry parameters in serum, plasma and whole blood.
Trinity Biotech sells direct in the United States, Germany, France
and the U.K. and through a network of international distributors
and strategic partners in over 75 countries worldwide. For further
information, please see the Company's website:
www.trinitybiotech.com.
Contact: Trinity Biotech plc |
Lytham
Partners, LLC |
John Gillard |
Joe Diaz |
(353)-1-2769800 |
(1)-602-889-9700 |
|
E-mail:
investorrelations@trinitybiotech.com |
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