Corgenix Medical Corp., a company that engages in the research, development, manufacture, and marketing of in vitro diagnostic products for use in disease detection and prevention in North America and internationally, recently announced that it has closed upon a $1.5 million secured revolving line of credit with LSQ Funding Group, L.C, (LSQ). The new revolving line of credit offers Corgenix a very favorable interest rate and much more flexibility than the former factoring and inventory line of credit.
The initial funding is approximated at $1.1 million. This financing has enabled the retirement of Corgenix’s factoring line of credit and inventory loan with Summit Financial Resources, L.P. and will be utilized for working capital purposes. The agreement made with LSQ initially will be over a term of three years. In accordance to the agreement, Corgenix has the ability to borrow up to $1.5 million in cash, on a revolving basis, which will be secured by inventory, accounts receivable, and various other assets.
Expanding on the announcement, William Critchfield, Senior Vice President of Operations and Finance and Chief Financial Officer of Corgenix, stated, “The favorable terms of the new revolving credit facility emphasize our company’s much improved financial position and the prospects of very strong future performance.”
“Our new credit facility, combined with the company’s prospects for a record year in fiscal 2012, will definitely help provide us the platform to access an additional $1.5 million in potential capital to pursue our planned expansion efforts and capitalize on other opportunities that may come our way,” Critchfield added.
LSQ Chief Operating Officer and Executive Vice President Roger P. Allen said, “LSQ Funding Group looks forward to working with an innovative and dynamic company such as Corgenix. We are excited to play a part in their growth and continued success.”
For more information on Corgenix Medical Corporation, visit their website: www.corgenix.com
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