genedrive PLC (AIM:GDR) shares moved higher in Wednesday's early trade after it announced it had agreed heads of terms for a shareholder loan of up to £1 million from major investor David Nugent.
The facility will be available in two £500,000 tranches, with the first tranche accessible upon signing of final documentation.
"With heads of terms now agreed with David we will look to rapidly progress documentation to provide the company with the optionality of accessing this loan," said chief executive Gino Miele.
Nugent, meanwhile, commented: "I look forward to further constructive discussions with Gino and the board and ultimately ensuring that the company has the financial and other resources it needs to deliver for patients and shareholders."
The loan will be secured over the company’s assets, and the first tranche carries no fees or interest, and the facility will have a maximum term of twelve months from completion.
In London, Genedrive shares gained 12.7% changing hands at 1.08p.