DENVER--(BUSINESS WIRE)--Corgenix Medical Corporation (OTCQB:CONX.OB), a worldwide developer and marketer of diagnostic test kits, today announced that it has closed on a $1.5 million secured revolving line of credit with LSQ Funding Group, L.C. (LSQ). The new revolving line of credit provides Corgenix a very favorable interest rate and much greater flexibility than the previous factoring and inventory line of credit. In connection with the new line of credit, Corgenix is in discussions with U.S. Bank, a partner of LSQ, about moving its primary banking arrangements to U.S. Bank.
The initial funding is approximately $1.1 million. This financing has allowed for the retirement of Corgenix’s factoring line of credit and inventory loan with Summit Financial Resources, L.P., and will be used for working capital purposes. The agreement with LSQ initially has a term of three years. Under the agreement, Corgenix has the ability to borrow up to $1.5 million in cash, on a revolving basis, secured by accounts receivable, inventory and other assets.
Commenting 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 continued.
LSQ Chief Operating Officer and Executive Vice President Roger P. Allen stated, “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.”
About Corgenix Medical Corporation
Corgenix is a leader in the development and manufacturing of specialized diagnostic kits for immunology disorders, vascular diseases and bone and joint disorders, including the world’s only non-blood-based test for aspirin effect. Corgenix diagnostic products are commercialized for use in clinical laboratories throughout the world. The company currently sells over 50 diagnostic products through a global distribution network and has significant experience advancing products through the FDA process. More information is available at www.corgenix.com.
About LSQ Funding Group, L.C.
LSQ Funding Group, L.C. is a nationwide leader specializing in asset-based financing to growing companies. Offering competitive rates and a stable, secure financial base, LSQ’s services help clients improve efficiency and drive profitability. For additional information, visit www.lsq.com.
Statements in this press release that are not strictly historical facts are “forward-looking” statements (identified by the words “believe”, “estimate”, “project”, “expect” or similar expressions) within the meaning of the Private Securities Litigation Reform Act of 1995. These statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company’s products and services in the marketplace, competitive factors, changes in the regulatory environment, and other risks detailed in the Company’s periodic report filings with the Securities and Exchange Commission. The statements in this press release are made as of today, based upon information currently known to management, and the Company does not undertake any obligation to publicly update or revise any forward-looking statements.