East West Bank Deal With CAS Medical Includes Warrant
CAS Medical Systems (CASMED) announced it has entered into a loan and security agreement with a total value of up to $6.0 million with East West Bank, a subsidiary of East West Bancorp. The financing is comprised of a $3.5 million three-year secured term loan and a $2.5 million revolving line of credit expiring in January 2014.
In connection with the loan agreement, CASMED has issued to East West Bank a five-year warrant to purchase 133,333 shares of CASMED common stock at a price of $1.80 per share.
Thomas M. Patton, Chief Executive Officer of CASMED, said, “The increase in working capital, on such attractive terms, provides us with added flexibility as we work to make our FORE-SIGHT(R) absolute cerebral oximeter a standard of care for patients in critical care, and introduce our next-generation, advanced monitoring products next year.
Branford, CT-based CASMED is a developer and manufacturer of medical devices for non-invasive patient monitoring.