GENMARK DIAGNOSTICS, INC. (NASDAQ:GNMK) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.
On December 16, 2019 (the “Effective Date”), GenMark Diagnostics, Inc. (the “Company”) entered into a second amendment (the “Second Amendment”) to its Loan and Security Agreement (as amended, the “Agreement”) with Solar Capital, Ltd. and the financial institutions that are or become parties to the Agreement as lenders (collectively, the “Lenders”). to the Agreement, the Lenders agreed to provide the Company with up to $65,000,000 in a series of term loans, as further described below. Under the terms of the Agreement, the Company may, subject to certain conditions, borrow from the Lenders:
to the Second Amendment, the Lenders agreed to increase the amount the Company could borrow from the Lenders under the Agreement to the Tranche 2 Loan from $15,000,000 to $20,000,000; provided>that the Company achieved the Tranche 2 Loan Funding Condition. In connection with entering into the Second Amendment, the Company notified the Lenders that the Company had satisfied the Tranche 2 Loan Funding Condition and requested to borrow an additional $20,000,000 from the Lenders under the Agreement. On the Effective Date, the Company received the net proceeds of the Tranche 2 Loan to the terms of the Agreement.
The foregoing description of the terms of the Second Amendment is qualified in its entirety by reference to the text of such document, a copy of which will be filed in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”), with portions omitted and filed separately with the SEC to a request for confidential treatment.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 of the Current Report on Form 8-K filed by the Company with the SEC on February 6, 2019, as well as the information set forth in Part II, Item 5 of the Quarterly Report on Form 10-Q filed by the Company with the SEC on November 6, 2019, is incorporated herein by reference.
The information included in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.
About GENMARK DIAGNOSTICS, INC. (NASDAQ:GNMK)
GenMark Diagnostics, Inc. (GenMark) is a molecular diagnostics company. The Company focuses on developing and commercializing its eSensor detection technology. Its eSensor electrochemical technology detects multiple distinct biomarkers in a single sample. It sells its XT-8 instrument and related diagnostic and research tests (XT-8 system) in the United States. It has developed and intends to commercially launch its sample-to-answer ePlex instrument and its associated diagnostic tests, which it collectively refers to as its ePlex system, in Europe and the United States. It operates in the development, manufacturing, sales and support of instruments and molecular tests based on its eSensor detection technology segment. Over four of its diagnostic tests, which run on its XT-8 instrument, have received United States Food and Drug Administration clearance, including Cystic Fibrosis Genotyping Test, Warfarin Sensitivity Test, Thrombophilia Risk Test and Respiratory Viral Panel.
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