Completes €2m private placement to support second half sales growth

Novacyt (ALTERNEXT: ALNOV), an international specialist in cancer and infectious disease diagnostics reported earlier its strong first-half sales performance across the Group and the completion of €3.5m in bond refinancing. Today, Novacyt is pleased to announce a further private placement financing of €2m.

This latest equity financing again attracted support from current investors including Alto Invest and Nyenburgh. Under the terms of the financing, equity investors in this round will receive 399,500 of new Novacyt shares. The share capital of Novacyt following the capital increase will amount to €474,148.20 representing 7,112,223 shares with a nominal value of 1/15th of a euro each.

The dilution resulting from the capital raise is 5.95% compared to the 6,712,723 shares currently outstanding. The new shares will be listed on Alternext Paris and rank Pari Passu with existing shares under ISIN code FR0010397232.

This equity financing follows the recently announced first-half sales pro forma growth of 26% compared to last year and the closing of €3.5m in new bond financing with Kreos Capital. The combination of the €2m equity financing and the net proceeds (after repayment of existing debt) from the bond financing of approximately €2.0m means the Company will have net new funds of approximately €4m in addition to the cash which was of €1.3m at the end of June 2015.

The new capital will enable Novacyt to:

• continue to expand sales of the NOVAprep® platform - particularly internationally - and support the introduction of a reagent rental policy for placements of the NOVAprep® instruments
• develop the NOVAprep® platform with further automation and expanded use into new market sectors such as non-gynecological cancers
• develop the product portfolio and continue to support strong and profitable sales growth of the Lab21 products

Graham Mullis, Group CEO of Novacyt, commented:

"The business has delivered strong sales growth in 2015 and we are focused on creating shareholder value from continued sales growth across the Group and particularly the NOVAprep® platform technology. This additional equity funding is a testament to the trust our shareholders and new stakeholders hold in the significant potential of our NOVAprep® technology platform, strongly supported by continued growth prospects for Lab21 products. We are well positioned to deliver further growth during the second half 2015 and I look forward to updating shareholders of our continued progress.”

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