CompuMed, Inc. (OTCBB:CMPD) (www.compumed.net)
- a medical informatics company serving the healthcare community with
diagnostic software solutions - today announced that the Company has
entered into a new agreement with Boston Avenue Capital, LLC ("BAC")
which restructures its $ 4 million line of credit to provide liquidity
and working capital for growth initiatives including acquisitions. The
agreement announced today supersedes a previous agreement with BAC
announced last February for a revolving line of credit up to $ 4
million, under which the Company had not yet drawn any advances.
The former agreement obligated the Company to issue 16,000,000 warrants
at a variable price based on the trading of its stock price, regardless
of any drawdown. Under the new agreement, CompuMed would issue
16,000,000 warrants to BAC only if, and after, a drawdown of funds
occurs, and the strike price of the warrants is fixed at $ 2.00 each.
Any warrant issuance is subject to shareholder approval.
Prior warrant issuance under the old line of credit has been terminated,
and all such warrants have been cancelled.
"We are pleased to announce that CompuMed will continue to have access
to the Credit Facility, and now with more favorable terms,” said
CompuMed President and CEO Maurizio Vecchione. “Today’s announcement
should allow CompuMed to pursue strategic initiatives despite the
currently challenging financing environment.”
The new revolving line of credit matures on December 31, 2010, and
provides the Company with the right to draw down up to $ 4 million by
unanimous board action. Advances under the line of credit shall bear
interest at the current three-month London Interbank Offered Rate
(LIBOR) currently at about 1.85 percent, payable quarterly, and will be
a secured senior obligation of the Company. CompuMed has no obligation
to access the facility and will have full control over the amount and
the timing of any financing under the facility, subject to certain
conditions. These include a change in the composition of the board,
absence of certain default conditions, certain costs to keep the credit
facility in place and other customary terms. A copy of the facility
agreement has been filed by the Company with the SEC under form 8K.
About CompuMed:
CompuMed, Inc. (OTCBB:CMPD) develops and markets products and services
that combine telemedicine, medical informatics and advanced imaging. The
CardioGram™ is one of the first telecommunication networks designed to
remotely interpret electrocardiograms and is used by private practice,
government and corporate healthcare providers nationwide.
