The Canadian contractor has set up a new credit facility with Persistence Capital Partners LP (PCP) of C$1.25m on the basis that the one it established with Accord Financial in April was “insufficiently adaptable” to the needs of its business.
Chairman Michael Singer said: “Warnex appreciates the continued and long-term support of PCP that now provides the financial stability necessary for us to concentrate exclusively on our core Bioanalytical Services business, which remains the sole focus of Warnex under the excellent leadership of Michael Mancini.”
Lloyd Segal, managing partner at PCP was equally positive. He said that: "PCP believes in the great value provided by Warnex Bioanalytical to its industry-leading customers, and we look forward to helping the management team get back to focussing solely on executing the business plan."
Quebec-based Warnex has been on a financial rollercoaster for some time due to a sustained period on falling demand it encountered towards the end of 2011, which prompted it to try and rejig and refocus its operations.
These efforts achieved some success. Warnex it sold its medical labs business last December and – in April – it divested its analytical services unit to Neopharm Labs, resurrecting an agreement that did look to have collapsed in February.
The completion of the deal coincided with Warnex’s relisting on the stock market when – with the help of the credit facility it agreed with Accord – it joined the TSX Venture Exchange having been forced to delist from the main TSX index.
In other news Warnex has announced that its annual meeting – originally scheduled for June 28 – will now be held sometime in September.
The firm said: “Warnex had originally intended to hold its 2012 Annual Meeting on June 28, 2012. However, as Warnex advances in its strategic review process, management has come to appreciate that such process may result in the requirement to present various matters to shareholders for approval.
“Therefore, with a view to avoiding an unnecessary duplication of expenses, Warnex has obtained court approval to delay the holding of its Annual Meeting to no later than September 30, 2012, thereby allowing for the possibility of combining the Annual Meeting with any other meeting of shareholders that may be required as described above.”