iCAD, Inc. (Nasdaq: ICAD), an industry-leading provider of advanced image analysis, workflow solutions and radiation therapy for the early identification and treatment of cancer, today announced that it has entered into a five year, $15 million debt facility agreement ("the Agreement") with Deerfield Management Company LP, a leading healthcare investment fund. Under the terms of the Agreement, the Company will issue a $15 million principal amount senior secured 5.75% note; will enter into a Revenue Purchase Agreement; and will issue warrants to purchase 2,250,000 shares of iCAD Common Stock, plus an additional 500,000 shares of Common Stock if the Agreement is extended.
"We are pleased to enter into this transaction with Deerfield Management. 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 are confident iCAD is now in a strong position to grow our business, including the rollout of our new intra-operative radiation therapy (IORT) technology for early stage cancer treatment, as we pursue our strategic goal to be a leader in image analysis, workflow and radiation therapy solutions for early stage cancer."
"We see significant opportunity in iCAD based on its broad portfolio of innovative products addressing early stage cancer, from detection to treatment and therapy monitoring. 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, MD, Partner, Deerfield Management.
Cervical cancer rates drop significantly among vaccinated women