Microbix Further Optimizes Capital Usage and Availability

Microbix Further Optimizes Capital Usage and Availability

Benzinga
March 26, 2025

MISSISSAUGA, Ontario, March 26, 2025 (GLOBE NEWSWIRE) -- Microbix Biosystems Inc. (TSX:MBX, OTCQX: MBXBF, Microbix®), (TSX: MBX, OTCQX:MBXBF, Microbix®), Microbix®), a life sciences innovator, manufacturer, and exporter, announces the further optimization of the structure and utilization of its capital via the repayment of mortgage debt and expansion of its bank line of credit, moves that reduce interest expenses while maintaining strategic flexibility and resilience.

Per its Q1 fiscal 2025 financial disclosures, Microbix had a mortgage of C$ 1.2 million against its owned facility, with a current interest rate of 6.55%. That mortgage debt has now been repaid, eliminating annual interest and principal repayments totaling C$ 0.18 million. The mortgage repayment was made from available Cash & Equivalents, which were C$ 13.0 million as of December 31, 2024 (fiscal Q1 2025).

In turn, Microbix has expanded its bank line of credit ("LoC") to a maximum of C$ 4.0 million, from its prior maximum of C$ 2.0 million. The LoC is entirely undrawn at present and is being made available at a premium of 1.4% over the bank's prime rate (currently at 4.95%). The availability of the expanded demand LoC is driven by a borrowing-base formula that is predominantly driven by accounts receivable and inventory balances.

Management believes these two moves serve to optimize the efficient usage of Microbix's capital, while also ensuring maximum availability of funds for strategic resilience and flexibility. Specifically, the repayment of the mortgage will result in net interest savings, while the expansion of the LoC ensures that Microbix can continue to reinvest in the growth of its business and adapt to future market changes.

Following the referenced repayment of the mortgage, Microbix retains a Cash & Equivalents balance of over C$ 14 million plus the availability of up to C$ 4.0 million from its expanded LoC. Microbix thanks these two supportive lenders, BDC and TD, for their cooperation and support ...

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