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LEXINGTON, Mass. - Rapid Micro Biosystems, Inc. (NASDAQ:RPID) announced Tuesday it has entered into a five-year, $45 million term loan facility with Trinity Capital Inc. (NASDAQ:TRIN). According to InvestingPro data, the company currently holds more cash than debt on its balance sheet, with a healthy current ratio of 4.61x, though it has been rapidly burning through cash.
The life sciences technology company has drawn down $20 million at closing, with access to up to an additional $25 million subject to achieving certain commercial and operational milestones, with a portion available at the lender’s discretion.
The loan carries an initial floating interest rate of 11.5% per annum with an interest-only period of 36 months, which can be extended if future tranches are drawn down.
"This facility significantly strengthens our financial position and supports our continued focus on long-term revenue growth, margin expansion and increasing shareholder value," said Robert Spignesi, President and CEO of Rapid Micro Biosystems. The company has shown promising revenue growth of 28% in the last twelve months, though InvestingPro analysis reveals challenges with gross profit margins and near-term profitability. Subscribers can access 5 additional ProTips and comprehensive financial analysis in the Pro Research Report.
Proceeds will be used for general corporate purposes, potentially including supporting global commercial expansion of the company’s Growth Direct system and investments in manufacturing efficiencies, service productivity, and product cost reduction initiatives.
The Growth Direct system automates microbial quality control testing for pharmaceutical manufacturing operations, offering faster results and improved data integrity compared to traditional manual methods.
Armentum Partners acted as the company’s exclusive financial advisor on the transaction, according to the press release statement.
Rapid Micro Biosystems is headquartered in Lexington, Massachusetts, with U.S. manufacturing in Lowell, Massachusetts, and additional locations in Switzerland, Germany, and the Netherlands.
In other recent news, Rapid Micro Biosystems has been the focus of several significant developments. Lake Street Capital Markets has initiated coverage on the company with a Buy rating, setting a price target of $8.00. This decision highlights Rapid Micro Biosystems’ leadership in microbial quality control automation, particularly through its Growth Direct platform, which is known for reducing testing timelines significantly. Additionally, the company announced the appointment of Dr. Dafni Bika to its Board of Directors. Dr. Bika, who holds a prominent position at AstraZeneca, is expected to enhance the company’s expertise in pharmaceutical development and manufacturing. Her extensive experience is anticipated to support the ongoing promotion of the Growth Direct platform. These recent developments underscore Rapid Micro Biosystems’ strategic efforts to strengthen its market position and technological capabilities.
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