BRANFORD, Conn., June 30, 2014 (GLOBE NEWSWIRE) -- CAS Medical Systems, Inc. (Nasdaq:CASM) (CASMED), a leader in medical devices for non-invasive patient monitoring, announced that on Friday, June 27, 2014, the Company entered into a Loan and Security Agreement (the "Loan Agreement") with General Electric Capital Corporation ("GECC").
Pursuant to the Loan Agreement, GECC is providing the Company with a secured term loan of $7.5 million and a revolving line of credit up to $2.5 million. The term loan and the revolver each mature on June 27, 2018.
"Obtaining this new credit facility is a key milestone in our initiative to bring CASMED to cash-flow breakeven from operations with largely non-dilutive sources of capital," said Tom Patton, CASMED's President and CEO. "We are pleased to have a high-caliber partner like GE Capital as our lender and look forward to working with them over the longer term as our Company expands and our credit needs evolve."
The term loan requires monthly principal repayments over 36 months commencing July 1, 2015, or over 30 months commencing January 1, 2016, if the Company reaches certain financial targets.
The Company's secured term loan of $5 million with East West Bank was repaid in full at the closing of the Loan Agreement, and the revolving line-of-credit with East West Bank, which had no outstanding balance, was terminated.
The Company was advised in the transaction by Armentum Partners.
The foregoing description of the Loan Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Loan Agreement, which is included as Exhibit 10.1 to the Form 8-K to be filed by the Company today.
About CASMED® – Monitoring What's Vital
CASMED is a leading developer and manufacturer of medical devices for non-invasive patient monitoring that are vital to patient care. The Company's FORE-SIGHT Absolute Cerebral Oximetry technology provides highly accurate, non-invasive, continuous measurement of absolute cerebral tissue oxygen saturation. Direct monitoring of tissue oxygenation provides a superior and powerful tool to alert clinicians to otherwise unrecognized and dangerously low levels of oxygenation of the brain and other tissues, thereby allowing them to intervene appropriately in the care of their patients. In addition to FORE-SIGHT Oximeters and accessories, the Company provides a line of bedside patient vital signs monitoring products, proprietary non-invasive blood pressure monitoring solutions for OEM use, neonatal intensive care supplies, and service.
For further information regarding CASMED, visit the Company's website at www.casmed.com.
Statements included in this press release, which are not historical in nature, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements relating to the future performance of the Company are subject to many factors including, but not limited to, the customer acceptance of the products in the market, the introduction of competitive products and product development, the impact of any product liability or other adverse litigation, working capital and availability of capital, commercialization and technological difficulties, the impact of actions and events involving key customers, vendors, lenders, competitors, and other risks detailed in the Company's Form 10-K for the year ended December 31, 2013, and other subsequent Securities and Exchange Commission filings.
Such statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. When used in this press release, the terms "anticipate", "believe", "estimate", "expect", "may", "objective", "plan", "possible", "potential", "project", "will", and similar expressions identify forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof, and we do not undertake any obligation to update any forward-looking statements, whether as a result of future events, new information, or otherwise.
|CAS Medical Systems, Inc.|
|Jeffery A. Baird|
|Chief Financial Officer|
Source:CAS Medical Systems, Inc.