Crdentia Announces Completion of Financing Transactions
09 Julho 2008 - 6:28PM
PR Newswire (US)
DALLAS, July 9 /PRNewswire-FirstCall/ -- Crdentia Corp. (OTC:CRDT)
(BULLETIN BOARD: CRDT) , a leading healthcare staffing company,
today announced it has expanded its accounts receivable-based
revolving credit facility to $7.5 million from $5.2 million and
revised and expanded existing term loans including a new $1.5
million debt investment in the Company. Separately, the Company
also announced that it has completed a private placement equity
offering for aggregate proceeds of $1 million. Proceeds will be
used for general working capital purposes. Crdentia signed
agreements with Capital TempFunds, a division of Capital Business
LLC, to have them take over from ComVest Capital, LLC (ComVest) a
majority of Crdentia's existing accounts receivable-based revolving
credit facility and to increase the facility to $7.5 million from
$5.2 million. In addition, the term debt presently in place from
ComVest (two tranches of three-year term debt of $2.5 million each)
was revised as follows: (i) the principal payments on Tranche A
Note were delayed and amortization will commence in September 2009,
(ii) $1.5 million was added to the principal amount of Tranche B to
increase the balance to $4 million and Tranche B is now convertible
at the option of ComVest upon certain triggering events at the same
price of the equity financing. In addition, the original warrant to
ComVest to purchase 8,000,000 shares has been redeemed in exchange
for a Trance C Note in the amount of $2.4 million thereby retiring
this warrant. The expanded revolving credit facility bears interest
at the greater of (a) the prime rate of interest quoted in the Wall
Street Journal plus 2.0% or (b) 8.5%. The term loans bear interest
at 12.5% annually. In addition to the above, Crdentia issued a
Common Stock Purchase Warrant to ComVest to purchase up to 525,000
shares of Common Stock of Crdentia with an exercise price of $0.35
per share. The private placement is comprised of 3,333,333 shares
of common stock at a price of $0.30 per share and warrants to
purchase up to 1,666,667 shares of common stock, for aggregate
proceeds of $1,000,000. The Warrants are immediately exercisable
and have an exercise price of $0.35 per share with a five-year
term. The shares have been issued in a private placement
transaction pursuant to Section 4(2) of the Securities Act of 1933,
as amended, and the rules and regulations promulgated thereunder.
John Kaiser, CEO of Crdentia said, "As investors are likely
well-aware, today's credit market environment is quite challenging,
yet the strength of our business allowed Crdentia to complete a
favorable transaction for the Company. As we move forward with our
previously announced plans to take Crdentia private, we are pleased
to have completed these important financing transactions that
improve the Company's financial flexibility with the addition of
substantial working capital and ability to grow our revolver
borrowing base as the Company grows. With this added liquidity, we
will continue to work aggressively to execute our strategic growth
plans to establish Crdentia as a leading full-service supplier of
healthcare staffing throughout the Sun Belt region." About Crdentia
Corp. Crdentia Corp., one of the nation's leading providers of
healthcare staffing solutions, is focused on recruiting talented
national and international healthcare professionals to meet the
ever-increasing employment needs of over 2,300 clients. Crdentia is
one of the few companies that can provide quality temporary staff
for all healthcare industry positions including local nurses,
travel nurses, allied health, locum tenens and home care
professionals. For more information, visit
http://www.crdentia.com/. Forward Looking Statements Statements
contained in this release that are not historical facts are
forward-looking statements that involve risks and uncertainties.
Among the important factors which could cause actual results to
differ materially from those in the forward-looking statements
include, but are not limited to, those discussed in "Risk Factors"
in the Company's Forms 10-K, Forms 10-Q, and other filings with the
Securities and Exchange Commission. Such risk factors include, but
are not limited to, a limited operating history with no earnings;
reliance on the Company's management team, members of which have
other business interests; the ability to successfully implement the
Company's business plan; the ability to continue as a going
concern; the ability to fund the Company's business and acquisition
strategy; the growth of the temporary healthcare professional
staffing business; difficulty in managing operations of acquired
businesses; uncertainty in government regulation of the healthcare
industry; and the limited public market for the Company's common
stock. The actual results that the Company achieves may differ
materially from any forward-looking statements due to such risks
and uncertainties. Crdentia undertakes no obligation to revise or
update publicly any forward-looking statements for any reason.
Contact Crdentia Corp. John Kaiser, CEO Phone: 972.850.0780 Fax:
972.392.2722 Jim TerBeest, CFO Phone: 972.850.0780 Fax:
972.392.2722 DATASOURCE: Crdentia Corp. CONTACT: John Kaiser, CEO,
+1-972-850-0780, Fax, +1-972-392-2722, , or Jim TerBeest, CFO,
+1-972-850-0780, Fax, +1-972-392-2722, , both of Crdentia Corp. Web
site: http://www.crdentia.com/
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