By Devika Patel
Knoxville, Tenn., Feb. 19 - CompuMed, Inc. said it has secured a $4 million revolving line of credit with Boston Avenue Capital, LLC.
The line of credit matures on Dec. 31, 2017. Advances under the facility will bear interest at the current three-month Libor, which will be payable quarterly in arrears on the fifth business day of each January, April, July and October, beginning on April 7.
The new facility may be prepaid at any time without penalty, other than payment of the 1% commitment interest on unused advances if the commitment is not terminated.
Boston Avenue also bought a warrant for 16 million shares for $5,000, exercisable at the average of the daily volume weighted average price of CompuMed's common shares for 180 days after the date of issue. The warrant expires on the earlier of 20 years and 10 years after the company has reserved a sufficient number of common shares to be issued upon conversion.
Proceeds will be used to provide liquidity and working capital for growth initiatives and future expansion.
Based in Los Angeles, CompuMed develops computer-aided diagnostic products used by the biotech industry.
| Issuer: | CompuMed, Inc.
|
| Issue: | Revolving line of credit
|
| Amount: | $4 million
|
| Maturity: | Dec. 31, 2017
|
| Coupon: | Three-month Libor, payable quarterly
|
| Warrants: | For 16 million shares
|
| Warrant expiration: | Earlier of 20 years and 10 years after the company has reserved a sufficient number of common shares to be issued upon conversion
|
| Warrant strike price: | Average of the daily volume weighted average price of CompuMed's common shares for 180 days after issue date
|
| Investor: | Boston Avenue Capital, LLC
|
| Settlement date: | Feb. 15
|
| Stock symbol: | OTCBB: CMPD
|
| Stock price: | $0.37 at close Feb. 15
|
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