Sequenom Enters Into New $30.0 Million Credit Facility
SAN DIEGO, June 2, 2011 /PRNewswire/ -- Sequenom, Inc. (NASDAQ: SQNM), a life sciences company providing innovative genetic analysis solutions, today announced it and its subsidiary Sequenom Center for Molecular Medicine® (Sequenom CMM) have secured a $30.0 million financing commitment from Silicon Valley Bank’s San Diego-based team. Sequenom will use proceeds from the facility to support the development and commercialization of new products and other near term growth initiatives.
The credit facility consists of a term loan of up to $20.0 million, and a $10.0 million revolving line of credit to be used for the purchase of capital equipment to expand laboratory capacity and to fund working capital requirements, accounts receivable and inventory as Sequenom CMM prepares to commercialize and launch new laboratory developed tests.
"The addition of this new credit facility enables us to extend the runway provided by financings put in place over the last year and to maintain a consistent level of liquidity as we move into an active growth phase for the company," said Paul V. Maier, CFO of Sequenom, Inc.
The Sequenom CMM laboratory in San Diego, Calif. was recently awarded accreditation by the Accreditation Committee of the College of American Pathologists (CAP), while the laboratory based in Grand Rapids, Mich. received its third re-accreditation based on the results of recent onsite inspections. In May of 2011, laboratory director Daniel H. Farkas, Ph.D., H.C.L.D. was advised of this national recognition and congratulated for the excellence of the services being provided, making the laboratory one of more than 7,000 CAP-accredited facilities worldwide.
Sequenom, Inc. (NASDAQ: SQNM) is a life sciences company committed to improving healthcare through revolutionary genetic analysis solutions. Sequenom develops innovative technology, products and diagnostic tests that target and serve discovery and clinical research, and molecular diagnostics markets. The company was founded in 1994 and is headquartered in San Diego, California. Sequenom maintains a Web site at http://www.sequenom.com to which Sequenom regularly posts copies of its press releases as well as additional information about Sequenom. Interested persons can subscribe on the Sequenom Web site to email alerts or RSS feeds that are sent automatically when Sequenom issues press releases, files its reports with the Securities and Exchange Commission or posts certain other information to the Web site.
About Sequenom Center for Molecular Medicine
Sequenom Center for Molecular Medicine (Sequenom CMM®) is a CAP accredited and CLIA-certified molecular diagnostics laboratory dedicated to the development and commercialization of laboratory-developed genetic tests for prenatal and ophthalmic conditions. Utilizing innovative proprietary technologies, Sequenom CMM provides test results that can be used as tools by clinicians in managing patient care. Testing services are available only upon request by physicians. Sequenom CMM scientists work closely with key opinion leaders and experts in obstetrics, retinal care and genetics. Our scientists use a variety of sophisticated and cutting-edge methodologies in the development and validation of tests. Sequenom CMM is helping to advance patient care with the power of molecular diagnostics. Visit www.SequenomCMM.com for more information on laboratory services.
About Silicon Valley Bank
Silicon Valley Bank provides commercial banking services to emerging growth and mature companies in the technology, life science, venture capital, private equity and premium wine industries. Through its focus on specialized markets and extensive knowledge of the people and business issues driving them, Silicon Valley Bank provides a level of service and partnership that measurably impacts its clients’ success. Founded in 1983 and headquartered in Santa Clara, Calif., the company serves clients around the world through 26 U.S. offices and seven international operations. Silicon Valley Bank is a member of global financial services firm SVB Financial Group (Nasdaq: SIVB). More information on the company can be found at www.svb.com.
Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Financial Group is also a member of the Federal Reserve System.
Except for the historical information contained herein, the matters set forth in this press release, including statements regarding the use of proceeds from the credit facility, the commercialization and launch of new laboratory developed tests, the effect or impact of the credit facility on extending the runway provided to Sequenom by financings in the past and on Sequenom's ability to maintain a consistent level of liquidity in the future as it moves into an active growth phase, Sequenom's commitment to improving healthcare through revolutionary genetic analysis solutions and dedication to development and commercialization of laboratory-developed genetic tests for prenatal and ophthalmic conditions, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the risks and uncertainties associated with reliance upon the collaborative efforts of other parties, Sequenom's ability to develop and commercialize new technologies and products, particularly new technologies such as diagnostics and laboratory developed tests, Sequenom's ability to manage its existing cash resources or raise additional cash resources, competition, intellectual property protection and intellectual property rights of others, government regulation particularly with respect to diagnostic products and laboratory developed tests, obtaining or maintaining regulatory approvals, ongoing litigation and investigations and other risks detailed from time to time in Sequenom, Inc.'s most recent Annual Report on Form 10-K and other documents subsequently filed with or furnished to the Securities and Exchange Commission. These forward-looking statements are based on current information that may change and you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Sequenom, Inc. undertakes no obligation to revise or update any forward-looking statement to reflect events or circumstances after the issuance of this press release.
SOURCE Sequenom, Inc.