A Diagnostics & Imaging Week
Clinical testing laboratory NeoGenomics (Fort Myers, Florida) reported an agreement with Aspen Select Healthcare (formerly MVP 3; Naples, Florida) for new funding supporting the company's business plan and repayment of indebtedness.
Aspen, controlled by Steven Jones, a NeoGenomics director, will make available up to $1.5 million of debt financing in a revolving credit facility, with an initial maturity of March 31, 2007. The facility refinances indebtedness of $740,000 owed to MVP 3, due on March 31, and makes available up to another $760,000.
The company will be able to borrow up to 80% of its accounts receivable less than 90 days old; 50% of its net property, plant and equipment balance; up to $500,000 on an unsecured basis; and another $500,000 on or before April 30.
As part of this transaction, NeoGenomics, Dr. Michael Dent, chairman of NeoGenomics, Aspen and certain other individual shareholders have amended and restated their shareholders agreement in order to provide that Aspen will have the right to appoint up to three of seven directors of the company and one mutually acceptable independent director.
Robert Gasparini, president of NeoGenomics, reported "tremendous progress ... in extending our business model into the Eastern U.S., and we believe the recapitalization gives us sufficient capital to become cash flow-positive [anticipated] in the second half of this year."
Steven Jones, managing director of Medical Venture Partners and a director of NeoGenomics, said, "NeoGenomics has the right people and the right product line-up in place to begin to substantially increase revenues. Our confidence in Bob Gasparini and his team to execute on the plan was a major factor in our decision to renew and extend the credit facility."
NeoGenomics offers genetic and molecular diagnostic testing services to the oncology and perinatology markets.