eMagin, manufacturer of Active Matrix OLED microdisplays for high resolution imaging products, entered into a $5 million revolving credit working capital facility with Rosenthal & Rosenthal.

The three-year facility is based on a borrowing base equivalent of 85% of eligible accounts receivable and is secured by a lien on all receivables, property, credit insurance policies and other insurance relating to the collateral, books, records and other general intangibles, inventory and equipment, proceeds of the collateral and accounts, instruments, chattel paper and documents.

The interest is equal to the prime rate plus 3% but may not be less than 6.5% with a minimum monthly interest payment of $2,000.

The financing will be used for general corporate purposes including funding the inventory build for the company’s recently launched consumer products, BlazeSpark and BlazeTorch.

“We are very pleased to enter into this financing transaction to fund the growth of our consumer products business and provide flexibility as we expand our presence in commercial and consumer markets. As a result of this transaction, we were able to strengthen our balance sheet at an attractive cost of capital,” said Andrew Sculley, president and CEO of eMagin.