Asterand secures $3m from SVB to pay for BioSeek
Asterand plc, the Royston-based human tissue specialist, plans to settle its final payment for the acquisition of BioSeek in cash after negotiating a $3m loan from Silicon Valley Bank, a long-term partner.
Following the acquisition in February 2010, the integration of BioSeek has proceeded well, according to Asterand CEO Martyn Coombs.BioSeek's revenues have increased by more than 50 per cent, which is in line with expectations, said Coombs. Asterand reports that it is further encouraged by the potential for “this exciting technology” paired with its own focused distribution channels.The total purchase price for BioSeek is based on BioSeek's 2010 revenues via a formula communicated in a circular issued to shareholders in February. The first $1 million of the consideration was paid earlier this year. Coombs, said: “We believe that electing to make the final payment for the BioSeek acquisition in cash is in the best interest of shareholders. “Our new loan facility will allow us to meet our obligations for the acquisition without dilution to our shareholders or a reduction in our cash reserves. “SVB has once again proven to be a strong, long term partner by providing us with a very attractive loan package in a tough banking environment.”• PHOTOGRAPH SHOWS: Asterand CEO Martyn Coombs