Warnex had been working to find a way of repaying debentures held by key investor Persistance Capital Partners (PCP) – a Quebec private equity group - after receiving a default notice at the end of March.
The new financing deal – a credit facility with Accord Financial Inc – enables Warnex to pay the C$975,947 ($979,641) it owes PCP and, according to chairman Michael Singer, gives the firm the opportunity to pursue it strategic aims.
"This credit facility allows Warnex to replace its convertible debentures with new non-dilutive financing and serves to demonstrate a continued commitment towards restructuring the company's balance sheet and providing the company with access to capital in order to pursue its objectives.”
These strategic aims include the sale of the firm’s remaining divisions – analytical services and bioanalytical services. Warnex did not say if efforts to find buyers for the two units have advanced since March, which it announced that the businesses have attracted suitors.
One aim that Warnex has achieved is continued listing. The Quebec firm has been searching for a new index since January, when it announced that it would be forced to leave the Toronto Stock Exchange (TSX) after falling out of step with listing requirements.
This search appears to have been successful with – from tomorrow – Warnex transferring to the TSX’s venture exchange, whose members include 29 companies involved in the pharmaceutical business.
It said: “The common shares of Warnex will be delisted from TSX at the close of market on April 23, 2012. Effective April 24, 2012, the Common Shares will start trading on the TSX Venture Exchange.”