Yourgene: SVB accounts have ‘no material impact’

Manchester-based molecular diagnostics firm Yourgene Health plc published a stock exchange update to investors about “the implications of the Silicon Valley Bank (SVB) receivership.”

Yourgene Health said: “Investors will be aware that the company has borrowings under a loan agreement with SVB.

“Yourgene primarily works with SVB’s UK division which operates under its own banking licence. 

“At present, the company holds approximately £20,000 on deposit with SVB UK in accounts used solely for payment of loan instalments and associated interest.  

“The insolvency of SVB UK therefore has no immediate material impact on Yourgene’s cash holdings or its ability to continue trading. 

The company’s only exposure to SVB in the US is for day-to-day trading purposes for its small US commercial team and operates a handful of company credit cards in the US. 

“The modest level of funds held by the company in a US account with SVB was transferred to accounts with other banks as events unfolded last week.

“The company has alternative US Dollar accounts in the UK and Canada which it can use as for banking purposes in North America. 

“Outside the UK and the US, the company does not use SVB services for any banking activities. 

The company believes its remaining SVB deposits are protected by the relevant insurance schemes in the UK and US.

As previously disclosed, the company has a term loan facility with SVB UK and continues to meet its repayment and other commitments as agreed with the lender.

“The current balance outstanding is circa £3m and the facility is due to be fully repaid by 30 September 2024.”

Stockport-based musicMagpie — which allows consumers to buy, rent and sell refurbished consumer technology — also published an update on its banking relationship with SVB.

“The group ended its loan arrangement with SVB when it entered a 3-year £30m revolving credit facility with HSBC UK and Natwest in July 2022 and so the UK business is unaffected by the news,” said musicMagpie.

“decluttr, the Group’s trading brand in the US, uses SVB as its transactional bank for day-to-day activities. 

“The closure of SVB is unlikely to have an impact on the business because transactions through decluttr can be made via alternative banking relationships outside of the US and the group had already been in discussions to move its US transactional banking relationship away from SVB.”

Wakefield-based Team17 Group, the developer of video games and educational entertainment apps, confirmed that Team17 USA, part of Team17 Games Label division, has a legacy banking relationship with SVB, but the account is no longer used for current trading.

“The group’s exposure to SVB represents less than 1% of the group’s current cash reserves and as such is immaterial to the group’s liquidity position.”