DrugMax, Inc. Secures $23 Million in Financing From LaSalle Business Credit, Inc.
LARGO, Fla., Oct. 29 /PRNewswire/ -- DrugMax, Inc. (Nasdaq: DMAX), a full- line wholesale distributor of pharmaceuticals, over-the-counter products, health and beauty aids and nutritional supplements, announced that the Company has reached a loan modification agreement with LaSalle Business Credit, Inc., formerly Mellon Business Credit. The loan modification increases DrugMax's asset-based line of credit from $15 million to $23 million.
"Access to working capital is an extremely important component of funding long-term corporate growth," William LaGamba, President and Chief Operating Officer, said. "Acquiring financing for a company is still a pretty challenging venture, however, we believe that our improved financial position and internal growth rate have afforded us the opportunity to secure this funding. In addition, DrugMax is strategically positioned within the pharmaceutical industry that is reporting double-digit growth each year."
"DrugMax is pleased to continue doing business with LaSalle Business Credit," Ron Patrick, Chief Financial Officer, said. "Both parties have worked diligently to build and maintain a mutually beneficial relationship."
LaSalle Business Credit, with over $7.0 billion in lending commitments, specializes in providing secured working capital and term financing for middle market companies in the manufacturing, distribution, retail and service industries. LaSalle Business Credit has 17 offices throughout the U.S. and has made loans in 46 states. LaSalle Business Credit is a subsidiary of Chicago-based LaSalle Bank, one of the Midwest's largest banks with $52 billion in assets.
DrugMax also announced that with the financing in place, the Company plans to discontinue its efforts to raise funds through its previously filed secondary offering. |
