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 Bank of the West. The new revolving line of credit provides Corgenix a very favorable interest rate and much greater flexibility than the previous asset-based revolving line of credit. The new credit facility follows the recent move by Corgenix of its primary banking arrangements to Bank of the West.
The new credit facility will provide gross availability of $1.5 million, and will replace an expiring asset-based revolving line of credit of the same amount with LSQ Funding. The new line of credit will be used for general working capital purposes, will be secured by Corgenix accounts receivable and inventory, and will be subject to normal covenants. It carries an interest rate of one month LIBOR (currently 0.18%) plus 4.0%, which would result in a current interest rate of 4.18%, considerably lower than the current LSQ interest rate of 15.7%. Corgenix did not have any amounts outstanding under its expiring revolving line of credit as of June 30, 2013. The agreement with Bank of the West initially has a term of one year. 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, its strong industry track record and anticipated growth.”
“Our new credit facility, combined with the company’s prospects for a record year in fiscal 2014, will provide us the flexibility required to fund our growth and execute on strategic initiatives,” Critchfield continued.
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 in product submissions to the FDA and other worldwide regulatory authorities. Additionally, Corgenix contract develops and manufactures products for key medical and life science companies in state-of-the-art facilities in Colorado. The company operates under a Quality Management System that is ISO 13485:2012 certified and compliant with FDA regulations. More information is available at www.corgenix.com.
About Bank of the West
Based in San Francisco with a regional office in Denver, $63 billion-asset Bank of the West offers a wide range of personal, commercial, wealth management and international banking services. The bank operates more than 600 retail and commercial banking locations in 19 Western and Midwestern states. Bank of the West is a subsidiary of BNP Paribas, which has a presence in 80 countries with nearly 200,000 employees. Bank of the West (www.bankofthewest.com) is a Member FDIC and Equal Housing Lender.
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. Such statements, which are inherently uncertain, are based on management’s current expectations and are subject to various factors, risks and uncertainties that may cause actual results, outcome of events, timing and performance to differ materially from those expressed or implied by such 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 reports filed with the Securities and Exchange Commission, and in the Company’s subsequent 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 or intend to publicly update or revise any forward-looking statements.
