Decision Diagnostics Receives Signed Term Sheet Agreement For $12.5 Million Revolving Credit Facility Which Will Complete DEC...
October 29 2013 - 8:15AM
Access Wire
- New 5-year credit facility
amounts to total annual financing of $250+ million
- DECN reviewed competing offers, is
now considering acquisitions pool proposals
- Current trade debt of approx. $2.8
million to be retired, enhancing balance
sheet
- $12.5 million
commercial line will NOT have an equity component
LOS ANGELES, CA - (ACCESSWIRE - October 29, 2013) -
Decision Diagnostics Corp. (OTCBB:DECN) the exclusive worldwide
sales, service and regulatory processes agent for the popular
Shasta GenStrip™, the unique Green Glucose Test Strip, specifically
designed to work with the Johnson & Johnson's (NYSE: JNJ)
LifeScan Ultra family of glucose testing meters, today announced
that that the Company has received a Term Sheet Agreement for a
$12.5 million revolving credit line from Alpha Credit Resources,
LLC, a division of Platinum Credit Management LP of New York, NY.
The new $12.5 million credit line will be totally equity free (no
share dilution) and when matched with the company's current 1.8X
sales turns per month (velocity), this credit facility will finance
company sales of its GenStrip product line through $250+ million
annually. The closing of the credit line and initial take-down is
subject to DECN Board approval and the usual and customary
documentation required for commercial credit and is expected early
in November.
"Our credit line provides substantial resources for the Company
to initiate our important, aggressive and revolutionary GenStrip
business strategies," commented Keith Berman, DECN's Principal
Officer, CFO and the GenStrip Program Director. "We want to make it
clear to our shareholders, and the investing public, that our
commercial lender Platinum Credit Management does not view Decision
Diagnostics as a small business and is backing up their beliefs
with $12.5 million. Thus, DECN never had to turn to stock market
arbitrages such as equity lines of credit, equity participation
agreements or any other type of toxic financing."
DECN is a leading provider of prescription and non-prescription
diagnostics, home testing products for the chronically ill and a
premier developer of revolutionary cell phone centric e-health
products and technologies. DECN's FDA cleared Shasta GenStrip™
product was first introduced to the market in late 2012 as a lower
cost (50%) alternative for user/owners of Johnson and Johnson
LifeScan OneTouch® Ultra®, Ultra2® and Ultra Mini® glucose
meters.
Mr. Berman continued, "With the significant revenue streams
GenStrip will produce, when coupled with our renewed access to
$12.5 million of growth capital, we are now well positioned to
complete the launch of GenStrip and embark on our mission. With a
large and timely credit line coming into place, the company is now
considering an offer for a $2.5 million M&A pool."
The company also reminds shareholders and all interested parties
that it continues to air its new commercial video titled "GenStrip:
A Patchwork of Life." The company plans on releasing a media
schedule in the coming days. In the meantime, the extremely popular
video is available for viewing at:
http://shastagenstrip.com/shasta_ad.html or
http://youtu.be/zzBuHxb-rlM.
Forward Looking Statements:
This release contains forward-looking statements about our
business or financial condition that reflect our assumptions and
beliefs based on information currently available. We can give no
assurance that the expectations indicated by such forward-looking
statements will be realized. There may be other risks and
circumstances that we are unable to predict. When used in this
release, words such as "believes," "expects," "forecasts,"
"intends," "projects," "plans," "anticipates," "estimates" and
similar expressions are intended to identify forward-looking
statements, although there may be certain statements not
accompanied by such expressions.
For further information about Shasta GenStrip, please visit the
company's Web Sites: http://www.decisiondiagnostics.com/ or
http://www.shastagenstrip.com/.
GenStrip™ test strips are a product of Shasta Technologies, LLC
and are not manufactured, distributed, endorsed, or approved by nor
associated with LifeScan®, Inc. a Johnson & Johnson® Company,
manufacturers and distributors of the OneTouch® Ultra® Family of
Meters and OneTouch® Ultra® test strips.
Contact:
Decision Diagnostics Corp.
Keith Berman
(805) 446-2973
info@decisiondiagnostics.com
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