NEW YORK, Dec. 9 (GenomeWeb News) - Transgenomic said today that it has entered into an agreement for up to $7.5 million in a revolving line of credit with Laurus Master Fund.
Transgenomic said it would have access to the funds based on eligible accounts receivable and inventory balances. The arrangement replaces a previous $5.0 million line of credit from a commercial bank that had a higher interest rate, the company said.
Under the terms of the agreement, Transgenomic issued warrants to Laurus Funds to acquire up to 550,000 shares of its stock at a price based on a premium to the average trading price of its common stock for ten trading days prior to execution of the agreement.
In August, Transgenomic raised $4.5 million in a private placement with a number of investors.