Trinity Biotech plc (TRIB) stock soared 14.27% in the current-market trading session at the price of $1.12 following a $45M strategic partnership deal with MiCo Ltd.
TRIB $45M Partnership Deal
On 11th April 2022, TRIB announced entering a strategic partnership and investment deal worth US$45M with MiCo Ltd, a Korea-based firm centered around the biomedical industry. The investment is composed of roughly 11.2M ADSs for US$2.25 per share, representing a 130 percent premium at the closing price of US$0.98 on 8th April 2022.
Additionally, TRIB has approved the issuance of a junior convertible note in the principal amount of US$20M, with a specified interest rate of 1.5 percent and an ADS price of US$3.24 each share. It will result in a total investment of around US$45M by MiCo. Following this deal, MiCo Ltd will retain 29.9 percent of the company’s voting share capital.
These investment funds will use to reimburse a part of TRIB’s US$81.25M term loan, which will decrease the stocks’ annual interest cost by US$4M. The company also hopes to facilitate its lower-cost debt funding options via this investment. The deal is subject to customary approval by the Korean central bank and will close by the end of April 2022.
TRIB Market Outlook
This US$45M investment, combined with geographic networks and technical expertise, will lead TRIB stock toward exciting growth. It will further accelerate the production and commercialization of TRIB’s diagnostic outlets. The investment symbolizes another significant step in bolstering the stock’s balance sheet, following its successful refinancing with advisors.
Moreover, this investment will relieve TRIB’s annual interest payment. It will provide the stock with access to lesser-cost refinancing options. The lower cash outflow will enable the company to leverage its growth to deliver technology-based products and services. Resultantly, it will play a significant role in fulfilling the current needs of evolving diagnostic market.