Fischer Imaging Corp. this week announced it has entered into a $10 million loan agreement with ComVest Investment Partners, a private equity group based in West Palm Beach, Fla.
Under the agreement, Fischer received an initial advance of $5 million and used the proceeds to retire all of its outstanding senior indebtedness and for working capital to fund operations, research and development and marketing initiatives. The remaining $5 million available under the commitment may be borrowed by Fischer from time to time, subject to the satisfaction of certain conditions, through November 15, 2005, Fischer said.
Harris Ravine, Fischer president and CEO commented: "This financing provides the company with valuable capital and additional resources to support the current rollout of our second generation SenoScan digital mammography system as well as development of future enhancements to SenoScan such as 3D capability."
The loan carries an interest rate of 8.5 percent per annum and matures in November, 2008. Fischer has the option to prepay the loan, in full or in part, at any time without any prepayment fee. Beginning with the first calendar quarter of 2006, the company is required to make certain minimum quarterly principal payments and to make mandatory principal prepayments based on Fischer's future cash flows.
In connection with the financing, the company issued ComVest warrants to acquire up to 2 million shares of Fischer common stock. The warrants have an exercise price of $4.25 per share and expire in February, 2010.