TORONTO, ONTARIO--(Marketwired - Dec. 12, 2016) - Microbix Biosystems Inc. (TSX:MBX) ("Microbix" or the "Company"), an innovator of biological products and technologies, today announced that it has arranged a new secured revolving credit facility jointly with The Toronto-Dominion Bank ("TD Bank") and Export Development Canada ("EDC").

The new credit facility will be used for general corporate purposes, including the execution of the Company's overall growth strategy. Specific terms of the credit facility were not disclosed.

"This new credit facility provides Microbix with additional capital and financial flexibility needed to support the future growth of our molecular diagnostics controls business, under attractive, non-dilutive terms," said Vaughn Embro-Pantalony, President and Chief Executive Officer of Microbix. 

To accommodate the additional security required by TD Bank and EDC, the Company has negotiated amended terms with the two holders of its issued and outstanding convertible debentures, in exchange for reducing their security position to one of unlimited subordination to the credit facility lenders.

The largest debenture holder has two convertible debentures; a $2.5 million debenture maturing in 2028 that was originally convertible at $0.65 per common share, and a $1.5 million debenture maturing in 2029 that was originally convertible at $0.35 per common share. The conversion price for both of these debentures has been amended to $0.23 per common share, and these debentures are now subject to restricted conversion privileges of a combined total of 1 million shares per year for the next five years, with the remaining balances being eligible for conversion through the end of their expiry dates in 2028 and 2029, respectively.

The second debenture holder has two convertible debentures of $0.5 million each, both originally convertible at $0.90 per common share and maturing on October 12, 2016 and February 15, 2017, respectively. Terms of these debentures have also been amended. The October debenture now matures on April 30, 2017 and it becomes non-convertible, and the stated interest rate increases from 9% to 12% for the remaining term. The February debenture maturity date has been extended to February 15, 2022, and the conversion price has been revised to $0.23 per common share. In addition, the second debenture holder has received 1.5 million common share purchase warrants, with an exercise price of $0.23 per common share and a term of five years. 

The convertible debenture amendments and the issuance of warrants are subject to final approval of the Toronto Stock Exchange.

Mr. Embro-Pantalony continued, "Our convertible debenture holders have demonstrated their continued support for and confidence in Microbix by giving us the flexibility to secure this new credit facility, which will help the Company maintain its strong growth trajectory without diluting its stock in the manner that equivalent equity financing would entail. This credit facility is a cost-effective source of capital that provides the necessary liquidity to build on the record sales we recently reported for the fiscal 2016 fourth quarter and year."

About Microbix

Microbix specializes in the research and development of biological solutions. This includes products for human health applications in the therapeutic and diagnostic markets and a product for the worldwide animal reproduction market. In its revenue generating business, the Company's virology products are at the core of the world's leading infectious disease diagnostics and quality control programs. The Company's pipeline of innovative technologies and products includes, Kinlytic, a thrombolytic drug with several approved and potential applications including the treatment of life-threatening blood clots, and the LumiSort semen sexing technology for the livestock industries. Established in 1988, Microbix is a publicly traded company, listed on the Toronto Stock Exchange, and headquartered in Mississauga, Ontario.

Forward-Looking Information

This news release includes "forward-looking information," as such term is defined in applicable securities laws. Forward-looking information includes, without limitation, the risks associated with its revenue business, development projects, operations in foreign jurisdictions, engineering and construction generally, production (including control over costs, quality, quantity and timeliness of delivery of products), foreign currency and exchange rates, maintaining adequate working capital and raising further capital on acceptable terms or at all, and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and represent the Company's judgement as of the date of this new release, and the Company is under no obligation to update or alter any forward-looking information.

Please visit www.sedar.com for recent Microbix Biosystems Inc. filings.

For further information, please visit www.microbix.com.