CompuMed amends line of credit

By Devika Patel

Knoxville, Tenn., Dec. 17 - CompuMed, Inc. said it has revised the terms of its $4 million revolving line of credit with Boston Avenue Capital, LLC.

The former agreement obligated the company to issue 16 million 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 million warrants to BAC only if, and after, a drawdown occurs, and the strike price of the warrants is fixed at $2.00.

Warrants issued prior to this new agreement have been canceled.

The new revolving line of credit matures on Dec. 31, 2010.

Advances under the line of credit will bear interest at the current Libor, payable quarterly.

Based in Los Angeles, CompuMed develops computer-aided diagnostic products used by the biotech industry.

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