January 4, 2012 – iCAD Inc. announced a five-year, $15 million agreement to raise capital for its rollout of a new intra-operative radiation therapy (IORT) technology for early stage cancer treatment.
Under the debt facility agreement with Deerfield Management Company LP, a healthcare investment fund, the company will issue a $15 million principal amount senior secured 5.75 percent note, will enter into a revenue purchase agreement, and will issue warrants to purchase 2.25 million shares of iCAD common stock, plus an additional 500,000 shares of common stock if the agreement is extended.
“This financing immediately strengthens iCAD’s cash position and enables the company to focus on achieving its long-term objectives for growth and expansion,” said Ken Ferry, president and CEO of iCAD.
“We see significant opportunity in iCAD based on its broad portfolio of innovative products addressing early stage cancer…iCAD’s strong customer base, along with the company’s potential to establish a leadership position in new developing markets, makes iCAD an attractive investment for our firm,” said Howard P. Furst, M.D., partner, Deerfield Management.
For more information: www.icadmed.com