Transgenomic Secures $8.0 Million Credit Facility

  Transgenomic Secures $8.0 Million Credit Facility

Business Wire

OMAHA, Neb. -- March 13, 2013

Transgenomic, Inc. (OTCBB: TBIO) today announced that it has secured an $8.0
million term and revolving credit facility from Third Security Senior Staff
2008 LLC, Third Security Staff 2010 LLC, and Third Security Incentive 2010 LLC
(collectively, the “Third Security Investors”), which are entities affiliated
with Third Security, LLC, a leading life sciences investment firm. Proceeds
from the facility will be used to refinance the Company’s outstanding debt
with Forest Laboratories and to help fund working capital requirements.

The facility consists of a $4.0 million term loan and a revolving credit line
that will have up to $4.0 million available for draw against eligible accounts
receivable. The 42-month term loan is structured to have an interest-only
period until January 2014, followed by a 33-month amortization period. The
revolving credit line also has a 42-month duration. The new line of credit,
combined with the $8.3 million raised in its recent private placement of
common stock, provides the Company with substantial capital to continue
building its presence as a leading personalized medicine company.

“The $8.0 million facility provides us with a non-dilutive vehicle to repay
our existing debt and also provides additional growth capital at attractive
terms,” said Mark P. Colonnese, Executive Vice President and Chief Financial
Officer. “This facility is another tangible show of support from Third
Security, who has been a knowledgeable and helpful partner with the Company
for several years. With our current cash position, this increased credit
capacity, and our market presence, we are well positioned to execute further
on our strategic growth plan.”

About Transgenomic

Transgenomic, Inc. (www.transgenomic.com) is a global biotechnology company
advancing personalized medicine in cardiology, oncology, and inherited
diseases through its proprietary molecular technologies and world-class
clinical and research services. The Company is a global leader in cardiac
genetic testing with a family of innovative products, including its C-GAAP
test, designed to detect gene mutations which indicate cardiac disorders, or
which can lead to serious adverse events. Transgenomic has three complementary
business divisions: Transgenomic Clinical Laboratories, which specializes in
molecular diagnostics for cardiology, oncology, neurology, and mitochondrial
disorders; Transgenomic Pharmacogenomic Services, a contract research
laboratory that specializes in supporting all phases of pre-clinical and
clinical trials for oncology drugs in development; and Transgenomic Diagnostic
Tools, which produces equipment, reagents, and other consumables that empower
clinical and research applications in molecular testing and cytogenetics.
Transgenomic believes there is significant opportunity for continued growth
across all three businesses by leveraging their synergistic capabilities,
technologies, and expertise. The Company actively develops and acquires new
technology and other intellectual property that strengthens its leadership in
personalized medicine.

About Third Security

Third Security is an independent, private venture capital investment firm with
offices in Radford, Virginia, Palm Beach, Florida and San Francisco,
California. The Third Security management team consists of life-science
focused investment professionals dedicated to managing the risks and
challenges of high growth, technology-driven businesses. More information is
available at www.thirdsecurity.com.

Forward-Looking Statements

Certain statements in this press release constitute “forward-looking
statements” of Transgenomic within the meaning of the Private Securities
Litigation Reform Act of 1995, which involve known and unknown risks,
uncertainties and other factors that may cause actual results to be materially
different from any future results, performance or achievements expressed or
implied by such statements. Forward-looking statements include, but are not
limited to, those with respect to management's current views and estimates of
future economic circumstances, industry conditions, company performance and
financial results, including the ability of the Company to grow its
involvement in the diagnostic products and services markets. The known risks,
uncertainties and other factors affecting these forward-looking statements are
described from time to time in Transgenomic's filings with the Securities and
Exchange Commission. Any change in such factors, risks and uncertainties may
cause the actual results, events and performance to differ materially from
those referred to in such statements. Accordingly, the Company claims the
protection of the safe harbor for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995 with respect to all
statements contained in this press release. All information in this press
release is as of the date of the release and Transgenomic does not undertake
any duty to update this information, including any forward-looking statements,
unless required by law.

Contact:

Investor Contact
Argot Partners
Michelle Carroll/Susan Kim, 212-600-1902
michelle@argotpartners.com
susan@argotpartners.com
or
Company Contact
Transgenomic, Inc.
Investor Relations, 402-452-5416
investorrelations@transgenomic.com
 
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