DENVER, Oct. 6 /PRNewswire-FirstCall/ -- Corgenix Medical Corporation (OTC Bulletin Board: CONX), a worldwide developer and marketer of diagnostic test kits, has announced that the company has been successful in securing a $1,750,000 credit facility providing initial funding of $1,109,000 in an asset based financing from Summit Financial Resources L.P. This financing allowed for the retirement of the company's factoring line of credit with Benefactor Funding Corp., and will be used for working capital purposes.
The agreement with Summit initially has a term of three years. Under the agreement, the company has the ability to borrow up to $1.75 million in cash secured by accounts receivable, inventory and other assets.
"This transaction, which is the culmination of many weeks of discussions with the Summit team, is a vital element in furthering the execution of our strategic plan," stated William Critchfield, Senior Vice President and Chief Financial Officer of Corgenix. "The new financing allows us to retire the existing factoring line, provides us with a fresh infusion of cash, and further provides us much greater financial flexibility and growth potential going forward."
Gordon La Haye, President & CEO of Summit Financial Resources, commented, "Summit is very pleased that Corgenix has chosen to replace their existing line with our working capital facility. We look forward to helping them achieve their growth objectives with this new, more flexible credit line." The Summit Financial Resources team was led by Renee Jackson, VP, Business Development Officer for the Intermountain Region, based in Denver.
"We have been extremely impressed by the professionalism and the very organized approach put forth by Summit," stated Critchfield. "Summit's asset size along with the broad expertise possessed by their management and lending team is very impressive. The fact that they were equally excited to have Corgenix as a portfolio company, after their having performed extremely comprehensive due diligence on our company, bodes very well for the future of our Company."
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 Summit Financial Resources L.P.
Summit Financial Resources is a nationally recognized provider of working capital financing to small and medium-sized businesses in a broad range of industries. With 16 offices nationwide and over 20 years of experience, Summit has established itself as one of the largest and fastest growing companies in its industry.
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.
SOURCE Corgenix Medical Corporation
|SOURCE Corgenix Medical Corporation|
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