Press Release - August 5, 2008 - Business Wire

Clarient Announces $8 Million Accounts Receivable Financing Agreement With Gemino Healthcare Finance

ALISO VIEJO, Calif.--(BUSINESS WIRE)--Clarient, Inc. (Nasdaq:CLRT), a premier anatomic pathology and molecular testing services resource for pathologists, oncologists, and the pharmaceutical industry, today announced it has completed a financing arrangement with Gemino Healthcare Finance. This new agreement consists of a senior secured revolving credit facility pursuant to which Clarient may borrow up to $8 million, subject to adjustment based on the amount of Clarient’s qualified accounts receivable and certain liquidity factors.

Ron Andrews, Clarient’s Chief Executive Officer, said, “This financing is an important step in our capital structuring process geared towards establishing a solid capital foundation to support continued growth of our cancer services business. We are pleased to be able to partner with a company like Gemino, which has a strong understanding of the healthcare industry.”

Under the facility, Clarient has drawn proceeds of $5.0 million based on its current qualified accounts receivable. The initial term of the facility runs through January 31, 2009. The facility may be renewed for two additional one-year periods, subject to satisfaction of certain conditions. The proceeds will be used to pay down borrowings under Clarient’s mezzanine financing facility with Safeguard Scientifics, Inc.

“Clarient’s success in cancer diagnostics has been through the dedication and support of the experienced management team and employees,” said Mike Gervais, Gemino Healthcare Finance’s Chief Executive Officer. “We are excited to have closed this transaction with Clarient, and we look forward to continuing to provide them with the resources they need to achieve their goals.”

About Clarient

Clarient combines innovative diagnostic technologies with world class expertise to assess and characterize cancer. Clarient’s mission is to become the leader in cancer diagnostics by dedicating itself to collaborative relationships with the healthcare community to translate cancer discovery and research into better patient care. The Company’s principal customers include pathologists, oncologists, hospitals and biopharmaceutical companies. The rise of individualized medicine as the new direction in oncology has created the need for a centralized resource providing leading diagnostic technologies such as flow cytometry and molecular testing. Clarient is that resource, having created a state-of-the-art commercial cancer laboratory providing the most advanced oncology testing and diagnostic services available both onsite and over the web. The Company is also developing new, proprietary “companion” diagnostic markers for therapeutics in breast, prostate, lung and colon cancers, and leukemia/lymphoma. Clarient is a Safeguard Scientifics, Inc. partner company. www.clarientinc.com

About Gemino Healthcare Finance

Gemino provides senior loans to healthcare service providers throughout the U.S., with typical financing needs ranging from $1 million to more than $15 million in the form of revolving lines of credit, secured-term loans, unsecured-term loans and real-estate financing. Gemino provides financing to hospitals, skilled nursing homes, home care and hospice agencies, imaging centers, surgical/outpatient centers, distributors, transportation companies and others involved in the delivery or support of healthcare services. www.gemino.com

About Safeguard

Founded in 1953 and based in Wayne, PA, Safeguard Scientifics, Inc. (NYSE:SFE) provides growth capital for entrepreneurial and innovative technology and life sciences companies. Safeguard targets technology companies in Software as a Service (SaaS) / Internet-based Businesses, Technology-Enabled Services and Vertical Software Solutions, and life sciences companies in Molecular and Point-of-Care Diagnostics, Medical Devices and Specialty Pharmaceuticals with capital requirements between $5 and $50 million. Safeguard participates in expansion financings, corporate spin-outs, management buyouts, recapitalizations, industry consolidations and early-stage financings. www.safeguard.com

Forward-Looking Statements

The statements herein regarding Clarient, Inc. (the “Company”) contain forward-looking statements that involve risks and uncertainty. Future events and the Company’s actual results could differ materially from the results reflected in these forward-looking statements. Factors that might cause such a difference include, but are not limited to: the Company’s ability to continue to develop and expand its diagnostic services business, the Company’s ability to expand and maintain a successful sales and marketing organization, the Company’s ability to maintain compliance with financial and other covenants under the Gemino facility and its other credit facilities, limitations on the Company’s ability to borrow funds under the Gemino credit facility based on the Company’s qualified accounts receivable and other liquidity factors, the Company’s ability to obtain annual renewals of the Gemino facility, the effects of a going concern audit opinion on the Company’s operations, the Company’s ability to successfully transition its billing function in-house from a third party vendor, whether the conditions to payment of all or any portion of the contingent consideration from the Company’s sale of its instrument systems business to Zeiss are satisfied, the Company’s ability to remediate the material weaknesses in the Company’s internal control over financial reporting, the continuation of favorable third party payer reimbursement for laboratory tests, the Company’s ability to obtain additional financing on acceptable terms or at all, unanticipated expenses or liabilities or other adverse events affecting cash flow, uncertainty of success in identifying and developing new diagnostic tests or novel markers, the Company’s ability to fund development of new diagnostic tests and novel markers and the amount of resources the Company determines to apply to novel marker development and commercialization, failure to obtain FDA clearance or approval for particular applications, the Company’s ability to compete with other technologies and with emerging competitors in novel cancer diagnostics and dependence on third parties for collaboration in developing new tests, and risks detailed from time to time in the Company’s SEC reports, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. Recent experience with respect to laboratory services, revenues and results of operations may not be indicative of future results for the reasons set forth above.

The company does not assume any obligation to update any forward-looking statements or other information contained in this document.


Contacts

Lippert/Heilshorn & Associates
Don Markley, 310-691-7100
dmarkley@lhai.com


Page Information

  • 4 months ago [history]
  • View page source
  • You're not logged in
  • No tags yet learn more

Wiki Information
Update to PBwiki 2.0

An entirely new PBwiki experience, including folders and easier editing.

Convert Now for Free | Learn more