Nasdaq listed Trinity Biotech has extended its funding capacity with the completion of a private placement of $20m of convertible notes, the largest debt funding round completed to date by the company.
This additional debt gives the diagnostic products manufacturer Trinity Biotech the capacity to look at targets with revenues of up to $40m. This would increase existing revenues by over 50%.
The notes mature on 1 January 2007 but are convertible at any time at a fixed conversion price of $3.55.
On Friday Trinity Biotech shares colsed at $3.16.
The placement, together with the recent $10m refinancing of existing debt lines, prepares Trinity Biotech for its next phase of expansion.
According to Davy Stockbrokers analyst Jack Gorman, a fragmented diagnostic market, at the sub-$100m revenue level, means that there are plenty of available targets.
'If accompanied by evidence of sustainable organic growth capacity these targets also carry the potential to substantially re-rate the company,' he said.
