NEW YORK (360Dx) – Medite Cancer Diagnostics today announced the closing of $5.4 million in private financing with GPB Debt Holdings to fund a growth strategy focused on bringing new cancer diagnostics to market. The financing will result in proceeds, after discounts, of $4.9 million for the company.
The funding will help with the fulfilling of orders and the booking of internal revenues for the company's new C1 SureCyte fluorogenic stain in the fourth quarter of 2017. In addition, Medite CEO David Patterson said that the company plans to continue to bring new products to market in 2018, including at-home specimen collection kits and cell preservation solutions.
Specifically, the company will use the proceeds of the offering to pay the outstanding balance of various credit facilities due to Hannoveresche Volksbank in the amount of $2.3 million, the outstanding balance of a settlement with VR Equity in the amount of $500,000, and the outstanding balance on secured promissory notes of $301,000, leaving $1.4 million for working capital, $125,000 for broker fees and $171,000 for purchaser legal fees.
"We are pleased to have completed this important financing that we believe will position Medite to execute on its growth strategy that is focused on bringing new innovative cancer diagnostic products built upon a foundation of manufacturing excellence to the global marketplace," Patterson said in a statement. The additional capital will also help the company meet internal production targets for the fourth quarter, which is typically Medite's strongest quarter, according to Patterson.
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