On Thursday July 21, 2011, Corgenix Medical Corporation (OTC: CONX), a global leader in manufacturing specialized diagnostic kits for immunology disorders, vascular diseases and bone and joint disorders, announced its new three-year agreement on a $1.5 million revolving line of credit with LSQ Funding Group.
LSQ Funding Group, is a specialized firm in asset-based financing to growing companies. Corgenix’s assignation of the said agreement with this group will benefit them with the gain of favorable interest rate based on the new revolving line of credit. Under the terms of the agreement, Corgenix is authorized to borrow up to $1.5 million in cash, on a revolving basis. The loan will be secured by receivable accounts, inventory and other assets.
Corgenix is determined to utilize the initial funding of approximately $1.1 million in clearing up its debt accumulated from the inventory loan lend by Summit Financial Resources and use the rest for capital purposes.
William Critchfield, Senior Vice President of Operations and Finance and Chief Financial Officer of Corgenix, acknowledged that they are contented with the new revolving credit facility and are convinced that it would be efficient in enhancing the company’s financial position thereby paving way for its future prospects.
LSQ Chief Operating Officer and Executive Vice President Roger P. Allen stated that they are looking forward to assist the dynamic company, Corgenix in their financial growth.
Corgenix is planning to move its primary banking arrangements to U.S. Bank, a partner of LSQ, in connection with the new line of credit.
Shares of COGX climbed 10.78% to $0.0997 with more than 47K shares exchanged hands.
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