Microbix Further Optimizes Capital Usage and Availability

MISSISSAUGA, Ontario, March 26, 2025 (GLOBE NEWSWIRE) -- Microbix Biosystems Inc. (TSX: MBX, OTCQX: MBXBF, Microbix^®), a life sciences innovator, manufacturer, and exporter, announces the further optimization of the structure and utilization of its capital via the repayment of mortgage debt and expansion of its bank line of credit – moves that reduce interest expenses while maintaining strategic flexibility and resilience.

Per its Q1 fiscal 2025 financial disclosures, Microbix had a mortgage of C$ 1.2 million against its owned facility, with a current interest rate of 6.55%. That mortgage debt has now been repaid, eliminating annual interest and principal repayments totaling C$ 0.18 million. The mortgage repayment was made from available Cash & Equivalents, which were C$ 13.0 million as of December 31, 2024 (fiscal Q1 2025).

In turn, Microbix has expanded its bank line of credit (“LoC”) to a maximum of C$ 4.0 million, from its prior maximum of C$ 2.0 million. The LoC is entirely undrawn at present and is being made available at a premium of 1.4% over the bank’s prime rate (currently at 4.95%). The availability of the expanded demand LoC is driven by a borrowing-base formula that is predominantly driven by accounts receivable and inventory balances.

Management believes these two moves serve to optimize the efficient usage of Microbix’s capital, while also ensuring maximum availability of funds for strategic resilience and flexibility. Specifically, the repayment of the mortgage will result in net interest savings, while the expansion of the LoC ensures that Microbix can continue to reinvest in the growth of its business and adapt to future market changes.

Following the referenced repayment of the mortgage, Microbix retains a Cash & Equivalents balance of over C$ 14 million plus the availability of up to C$ 4.0 million from its expanded LoC. Microbix thanks these two supportive lenders, BDC and TD, for their cooperation and support in making such improvements to its capital structure. Microbix believes it is important to maintain the maximum possible financial strength and flexibility, whether to support current operations, for further capacity expansions, to help ensure resilience in the face of economic or political uncertainties, or for other strategic purposes.

Jim Currie, Chief Financial Officer, commented, “These improvements to our capital structure reduce our net interest expenses and enhance our financial flexibility. While we’ve no current need or intent to draw funds from this expanded LoC, maximizing our financial strength helps with acquiring or retaining customers, ensures the interests of shareholders are well-protected, and even helps with hiring and retaining staff. Microbix is a proudly Canadian life sciences firm fulfilling a commitment to produce vital diagnostics-related products and services, generate sustained profit growth and superior investment returns, and provide fulfilling careers for our team members.”

About Microbix Biosystems Inc.

Microbix Biosystems Inc. creates proprietary biological products for human health, with over 120 skilled employees and sales now targeting C$ 2.0 million or more per month. It makes and exports a wide range of critical ingredients and devices for the global diagnostics industry, notably antigens for immunoassays and its laboratory quality assessment products (QAPs™) that support clinical lab proficiency testing, enable assay development and validation, or help ensure the quality of clinical diagnostic workflows. Its antigens drive the antibody tests of approximately 100 diagnostics makers, while QAPs are sold to clinical lab accreditation organizations, diagnostics companies, and clinical labs. Microbix QAPs are now available in over 30 countries, supported by a network of international distributors. Microbix is ISO 9001 & 13485 accredited, U.S. FDA registered, Australian TGA registered, Health Canada establishment licensed, and provides IVDR-compliant CE marked products.

Microbix also applies its biological expertise and infrastructure to develop other proprietary products and technologies, most notably Kinlytic^® urokinase, a biologic thrombolytic drug used to treat blood clots, and reagents or media to support molecular diagnostic testing (e.g., its DxTM™ for patient-sample collection). Microbix is traded on the TSX and OTCQX, and headquartered in Mississauga, Ontario, Canada.

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, discussion of the mortgage, the LoC or their goals or outcomes, its relationship with its lenders, Microbix’s business and business results, goals or outlook, risks associated with financial results and stability, development projects such as those referenced in its corporate presentation, regulatory compliance and approvals, access to and sales to foreign jurisdictions, engineering and construction, production (including control over costs, quality, quantity and timeliness of delivery), 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.

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