UK-based systems biology company Physiomics has entered into a 4.0m pound standby equity distribution agreement with YA Global Master SPV, an investment fund managed by Yorkville Advisors.
The agreement is primarily intended to strengthen the company's position for future mergers and acquisitions negotiations and the funds could also be used for working capital in the future.
According to Physiomics, the funds are available in two tranches of up to £2.0m and at this stage, no funds have yet been drawn down.
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Under the terms of the agreement, Physiomics is allowed to draw down funds over a period of up to three years in exchange for the issue of new ordinary shares in the company.
The maximum advance that may be requested is 300% of the average daily trading volume of ordinary shares multiplied by the volume weighted average price of such shares for each of the 20 trading days immediately preceding the draw down request, and with an overall advance limit of £0.5m per draw down.
Dr Mark Chadwick, Chief Executive Officer of Physiomics, said: "This flexible financing option strengthens the position of the company, particularly for any future mergers and acquisitions negotiations.
"While the available funds are not immediately required, this deal could also provide an opportunity to provide further working capital to see us through to the realisation of our new commercial offerings in development, should the need arise."
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