Mr. Jim Currie reports

MICROBIX FURTHER OPTIMIZES CAPITAL USAGE AND AVAILABILITY

Microbix Biosystems Inc. has further optimized the structure and utilization of its capital through 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 $1.2-million against its owned facility, with a current interest rate of 6.55 per cent. That mortgage debt has now been repaid, eliminating annual interest and principal repayments totalling $180,000. The mortgage repayment was made from available cash and equivalents, which were $13-million as of Dec. 31, 2024 (fiscal Q1 2025).

In turn, Microbix has expanded its bank line of credit (LoC) to a maximum of $4-million, from its prior maximum of $2-million. The LoC is entirely undrawn at present and is being made available at a premium of 1.4 per cent over the bank's prime rate (currently at 4.95 per cent). 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 and equivalents balance of over $14-million plus the availability of up to $4-million from its expanded LoC. Microbix thanks the two supportive lenders, BDC and TD, for their co-operation 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 creates proprietary biological products for human health, with over 120 skilled employees and sales now targeting $2-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 and ISO 13485 accredited, U.S. Food and Drug Administration registered, Australian Therapeutic Goods Administration registered, Health Canada establishment licensed, it and provides IVDR-compliant (In Vitro Diagnostic Regulation) CE-marked (Conformite Europeenne) 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 (for example, its DxTM for patient-sample collection). Microbix is traded on the Toronto Stock Exchange and the OTCQX and is headquartered in Mississauga, Ont., Canada.

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