Ray Tarke's Post Concerning the Terms of The Equity Line of Credit:
Excellent credit Line..A good Deal
American Biomed is to receive up to five million dollars in an equity line of credit.
<< According to American BioMed Inc.'s President and Chief Executive
Officer Steven B. Rash, the company received $600,000 immediately upon
the signing of the contract and has the ability to draw down additional funds against the remaining $5 million equity credit line at 30-day intervals if needed, over a two-year period, subject to meeting certain conditions prior to request for funding. The equity will be in the form of convertible preferred stock at a stated discount from the market price calculated at the time of conversion and carries an 8% dividend payable in cash or stock at the company's
option.>>
Key Points:
1) no more money problems / Company will make it alone or strategic partner
2) Great Terms which really is a.. Revolving Credit Line with great terms.
a) Lets say if the company needs to borrow if need be.. at 8 % interest and conversion rate of 15% discount( could be 15% or 20%) from the market price calculated at the time of conversion. I like this part because the price is not fixed. (ex. lets assumed next time ABMI borrows the stock is trading at $2.00 the conversion rate to the institutional investor will be $1.70 ) Okay he gets a discount but sure beats getting his shares at .50 cents fixed.
These favorable terms are usually given to a solid company such as Fortune 500 company's or one with a future such as ABMI that will make his investment very secure.
'The Company intends to use the funding in Four principal areas.!
1) To actively market our existing 100%-silicon balloon catheter line of which we have 10 FDA approved products.
2)To accelerate the development of the company's guideware micro-filter technology.
americanbiomed.com
The OmniFilter, a percutaneous guidewire microfilter that converts a
standard guidewire into a temporary microemboli filter, is designed to
prevent stroke-causing blood clots from reaching various organs of the
body. Its patented "purse string" closure secures clot removal without
loss into the blood stream, and its cost-effective design reduces the
chance of stroke and prevents distal embolization. Industry analysts
estimate a $500 million annual worldwide market for carotid angioplasty applications using this technology, with the U.S. representing approximately one-half of the worldwide market.
3) To expand the OmniCath(R) clinical trials from the on-going peripheral trials into the AV Fistula trials.
americanbiomed.com
ARTERIOVENOUS FISTULA
Abnormal communication between an artery and a vein. Etiology may
be congenital, in which smaller vessels are involved, or acquired as a
result of acute, local trauma (eg, from a bullet or stab wound) or of
erosion of an arterial aneurysm into an accompanying vein. It may cause symptoms and signs of arterial insufficiency (including ulceration due to embolization and ischemia) or of chronic venous insufficiency due to the high-pressure arterial flow within the involved veins (including peripheral edema, venous varicosities, and stasis pigmentation). If near the surface, a mass can be felt and the affected part is usually enlarged and warm, with distended and often pulsating superficial veins. A thrill can be palpated over the fistula, and a continuous machinery murmur with accentuation during systole can be heard with the stethoscope. The altered hemodynamics may cause heart failure if a significant portion of the cardiac output is diverted through the fistula. The treatment of choice is surgery, if feasible.
4) Lastly, to continue discussions with strategic partners that can assist in commercially advancing our technologies.''
Folks I Leave this one to your imagination !
We are looking better Everyday!!
Regards,
R.T
Obviously our stock has fallen a long way since Ray wrote this excellent post. I think we now have a tremendous buying opportunity.
Regards, Jeff
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