PBI CEO Ron Helm said that the loan will “provide financing for the company to fund our working capital and growth needs, in particular our development efforts involving the biomarker services business."
Helm went on to suggest that: “PBI is well-positioned to expand its role in the biomarker services industry, which represents a rapidly growing market that offers the potential for higher profit margins.”
The investment in biomarker development and production capacity fits with the strategy outlined by PBI at its most recent results presentation in May, shortly after completing a round of investment in additional laboratory equipment and staff.
At the time firm said that: “We are optimistic that such investments will allow the company to pursue additional market and revenue opportunities in fiscal 2010 and future years.” The new loan agreement suggests PBI is sticking to its investment plan.
Terry Giles, PBI board member since 2003, will provide the loan which is scheduled to last for a period of four years and will resign from the firm to avoid any conflicts of interest.
Giles will be replaced by former PBI chief medical officer Mario Ehlers, who is currently deputy director of the US federally funded Clinical Trials Group at the Immune Tolerance Network (ITN).
"We believe the terms of the Loan are more favourable than we could have obtained from other sources and the financing allowed us to avoid the dilution to stockholders that would have resulted from an equity-based financing at the current price of our stock.”