HemaSure Inc. Receives Financing Commitment From Commercial Bank
Company Reports Second-quarter Financial Results
MARLBOROUGH, Mass., Aug. 14 /PRNewswire/ -- HemaSure Inc.
(OTC Bulletin Board: HMSR), a developer and supplier of blood filtration
technologies, announced today that it has received a written commitment from a
commercial bank for a $5 million revolving line of credit.
HemaSure Receives Financing Commitment
Under the terms of the financing arrangement, HemaSure will be able to
borrow up to a total of $5 million. Up to $3 million under the revolving
credit line will be available upon the signing of the definitive loan
agreement with the remainder available upon the completion of certain
corporate milestones as defined, including clearance of its 510(k) Pre-Market
Notification Application. The revolving line of credit, which is expected to
expire in June 2000, will be used to help finance the Company's working
capital requirements and for general corporate purposes. Amounts borrowed
under the line will bear interest at the bank's prime lending rate plus 1/2
percent.
Sepracor Inc. (Nasdaq: SEPR), the Company's largest shareholder, has
agreed to guarantee the repayment of amounts borrowed under the line-of-credit
agreement. In exchange for the guarantee, subject to the approval of the
Company's Board of Directors, HemaSure will grant to Sepracor warrants to
purchase up to 1,700,000 shares of the Company's common stock at a price of
$0.69 per share, of which 1,000,000 warrants will be exercisable upon issuance
and 700,000 will be exercisable in the event the Company draws down in excess
of $3 million under the line of credit. The closing of the line of credit is
subject to the satisfaction of customary conditions, including the negotiation
and execution of customary loan documents and related agreements with
Sepracor. Accordingly, there can be no assurance that the line of credit will
close on the terms set forth in the commitment.
Stated Jack McGuire, HemaSure's President and Chief Executive Officer, "We
are very excited about significant milestone achievements for HemaSure during
the past several months. In May as planned, we filed a 510(k) Pre-Market
Notification Application with the U.S. Food and Drug Administration for our
new r\LS Red Blood Cell Filtration System. We expect to launch the product in
the United States in 1998 following 510(k) clearance."
Continued McGuire, "Of course, we are very pleased to have received our
recent financing commitment, which should provide us with the capital to
accomplish our strategic goals through 1998. As well, we will continue to
evaluate the need for additional capital."
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Would be interested in any Hemasure fan's take on this. Product apparently to be approved/launched next quarter. |
