• Non-binding term sheet for A$8.5m senior secured loan facility with Viburnum Funds
• Proposed transaction subject to securityholder approval and formal documentation
• Company to undertake equity raising to allow existing shareholders to participate

Universal Biosensors Inc. (ASX: UBI) has signed a non-binding term sheet with its substantial securityholder, Viburnum Funds Pty Ltd, for a senior secured loan facility of up to A$8.5 million. The proposed transaction is subject to satisfaction of certain conditions, including obtaining securityholder approval and the negotiation of formal legally binding documentation. The facility agreement will include customary terms and conditions, and the company intends to undertake an equity raising, likely in the form of a Security Purchase Plan, to provide existing securityholders with an opportunity to participate in the company's potential growth. If the proposed transaction proceeds, the funds provided under the facility agreement and the proceeds raised under the associated equity raising will be used for general working capital purposes. The key terms of the non-binding term sheet include a facility limit of up to A$8.5 million, first ranking general security over the company's assets, an 18-month term, 15% per annum interest rate, and a perpetual royalty of 10% on gross revenue from the company's water and wine testing strips (increasing to 15% if the second draw is utilised). The company has also advised that Non-Executive Director Mr. Craig Coleman, who is the Executive Chairman and founding shareholder of Viburnum, has resigned from the board to avoid any potential conflicts of interest as the transaction progresses.