A Medical Device Daily
American Scientific Resources (Weston, Florida) reported that it has received a commitment for a line of credit of up to $5 million with Ashford Finance, a New York-based corporate financing entity.
The multi-million-dollar line of credit must be used for purchase order and accounts receivable financing for the company's subsidiary, Kidz Med (also Weston), a provider of health and safety devices for children.
An additional line for inventory financing also is in process, which will enhance Kidz-Med's operational cash position, the company said.
"With the financing in place, we are truly looking forward to having financial stability, giving confidence to our current and future vendors," said Dr. Christopher Tirotta, CEO of American Scientific Resources. "Immediately, we intend to use the credit for PO financing without incurring dilution. Being this has nothing to do with equity, the line of credit is designed to enhance our cash position as we strive to bring other innovative products to the U.S. market. Coupled with our recent announcement about supplying the world's largest baby retailer, this is a major step forward for [us]."
Kidz-Med distributes health and safety-related pediatric products, including the Kidz-Med Thermofocus 5-in-1, a clinical non-contact thermometer.
In other financing news, International Stem Cell (ISC; Oceanside, California) reported that it has entered into a subscription agreement with an accredited investor to sell $3 million of Series C preferred stock at a price of $1 per share.
The funding is to occur in three tranches. The first, for $700,000, closed Aug. 20. The second closing for $1.3 million is scheduled for Sept. 23, and the final closing of $1 million is scheduled for Dec. 15, subject to determination by the investor that no material adverse event has occurred.
The investor will be entitled to one of the company's seven board seats. Each $1 share of Series C stock will be convertible into shares of common stock at 25 cents per share, subject to antidilution provisions if the company subsequently issues shares at a lower price.
The company said the funds will support work toward pre-clinical trials using parthenogenetic stem cells for retinal and liver disease and diabetes, advance the construction of therapeutic cell manufacturing facilities and support ongoing operations.
"These funds will go a long way toward insuring that ISC continues to move forward without interruption in its quest to provide the cells needed to make regenerative medicine therapies available to millions of people throughout the world," said CEO Kenneth Aldrich.
ISC is focused on developing therapeutic and research products.