Trinity Biotech plc announced that its largest investor and primary lender, Perceptive Advisors, intends to submit a proposal to convert a portion of the company’s outstanding debt and other obligations into equity. The move is aimed at reducing leverage and strengthening the balance sheet.
Perceptive Advisors, a leading life‑sciences investment firm with approximately $8 billion in assets, has a long‑standing relationship with Trinity Biotech, having previously supplied liquidity and amended credit agreements. The proposed conversion would lower interest expense, improve the debt‑to‑equity ratio, and provide additional equity capital to fund the company’s comprehensive transformation plan, which includes the development of its next‑generation continuous glucose monitor (CGM+) and expansion into new diagnostic markets.
The conversion is expected to dilute existing shareholders, as new shares would be issued, but it is viewed as a necessary step to address Trinity Biotech’s financial challenges, including declining revenue, negative profitability, and a distressed Altman Z‑Score. The company will engage in further discussions with Perceptive Advisors to finalize the terms, including the conversion price and timeline.
The announcement signals a significant financing event that could enhance Trinity Biotech’s financial flexibility and support its goal of achieving profitability and cash‑flow positivity from Q3 2025.
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