iCAD Announces New Credit Facility with Bridge Bank Increasing Operational Flexibility
NASHUA, N.H. – March 31, 2020 – iCAD,
Inc. (NASDAQ: ICAD), a global medical
technology leader providing innovative cancer detection and therapy solutions,
today announced that it has entered into a credit facility with Bridge Bank, a
division of Western Alliance Bank, effective March 30, 2020.
The new credit facility consists of a $7
million term loan and a $5 million revolving line of credit. The four-year
term loan will be interest-only for the first 18 months, which could be
extended by an additional six months, if certain conditions are met. The line
of credit has a two-year term and may be repaid and reborrowed at any time
until its maturity date.
“We are pleased to obtain this new
financing from Bridge Bank during this period of unprecedented economic impact
from the global coronavirus pandemic,” said Michael Klein, Chairman and CEO of
iCAD. “This new credit facility, and support from Bridge Bank,
strengthens our balance sheet and provides us with
additional operating flexibility.”
“The novel coronavirus (COVID-19) is
impacting the healthcare system as a whole. Although we do not provide guidance to investors relating to
results of operations, we expect that our results will be impacted as shipping,
logistics, installation and training have been delayed and ordering patterns
disrupted. We began to see this emerge in March and
anticipate that it will continue through Q2.
During these uncertain times we remain very focused on
disciplined execution of the highest return opportunities,” Mr. Klein
continued. “This environment allows us to prove the unique value of our technologies.
This includes one-day radiation therapy cancer treatment and AI-based solutions
that personalize breast cancer screening based on individual patient risk characteristics.”
About iCAD, Inc.
Headquartered
in Nashua, NH, iCAD is a global medical technology
leader providing innovative cancer detection and therapy solutions.
ProFound AI™ is a high-performing workflow solution for 2D and 3D
mammography, or digital breast tomosynthesis (DBT), featuring the latest in
deep-learning artificial intelligence. In 2018, ProFound AI for Digital Breast
Tomosynthesis (DBT) became the first artificial intelligence (AI) software for
DBT to be FDA-cleared; it was also CE marked and Health Canada licensed that
same year. It offers clinically proven time-savings benefits to radiologists,
including a reduction of reading time by 52.7 percent, thereby halving the
amount of time it takes radiologists to read 3D mammography datasets.
Additionally, ProFound AI for DBT improved radiologist sensitivity by 8 percent
and reduced unnecessary patient recall rates by 7.2 percent.1
The Xoft System is FDA-cleared, CE
marked and licensed in a growing number of countries for the treatment of
cancer anywhere in the body. It uses a proprietary miniaturized x-ray source to
deliver a precise, concentrated dose of radiation directly to the tumor site,
while minimizing risk of damage to healthy tissue in nearby areas of the body.
For more information, visit www.icadmed.com and www.xoftinc.com.
About Bridge Bank
Bridge Bank, a
division of Western Alliance Bank, Member FDIC, helps business clients realize
their growth ambitions. Founded in 2001 in Silicon Valley, Bridge Bank offers a
better way to bank for small-market and middle-market businesses across many
industries, as well as emerging technology companies and the private equity
community. Geared to serving both venture-backed and non-venture-backed
companies, Bridge Bank delivers a broad scope of financial solutions including
growth capital, equipment and working capital credit facilities, venture debt,
treasury management, asset-based lending, SBA and commercial real estate loans,
ESOP finance and a full line of international products and services. Based in
San Jose, Bridge Bank has 16 offices in major markets across the country along
with Western Alliance Bank’s powerful array of specialized financial services.
Western Alliance Bank is the primary subsidiary of Phoenix-based Western
Alliance Bancorporation. One of the country’s top-performing banking companies,
Western Alliance has ranked in the top 10 on the Forbes “Best Banks in America”
list for five consecutive years, 2016-2020. For more information, visit
bridgebank.com.
Forward-Looking Statements
Certain statements contained in this
News Release constitute “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995, including statements about
the future prospects for the Company’s technology platforms and products. Such
forward-looking statements involve a number of known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, but are not limited, to the
Company’s ability to achieve business and strategic objectives, the risks of
uncertainty of patent protection, the impact of supply and manufacturing
constraints or difficulties, uncertainty of future sales levels, to
defend itself in litigation matters, protection of patents and
other proprietary rights, the impact of supply and manufacturing constraints or
difficulties, product market acceptance, possible technological obsolescence of
products, increased competition, litigation and/or government regulation,
changes in Medicare or other reimbursement policies, risks relating to our
existing and future debt obligations, competitive factors, the effects of a
decline in the economy or markets served by the Company; and other risks
detailed in the Company’s filings with the Securities and Exchange Commission.
The words “believe,” “demonstrate,” “intend,” “expect,” “estimate,” “will,”
“continue,” “anticipate,” “likely,” “seek,” and similar expressions identify
forward-looking statements. Readers are cautioned not to place undue reliance
on those forward-looking statements, which speak only as of the date the statement
was made. The Company is under no obligation to provide any updates to any
information contained in this release. For additional disclosure regarding
these and other risks faced by iCAD, please see the disclosure contained in our
public filings with the Securities and Exchange Commission, available on the
Investors section of our website at http://www.icadmed.com and on the SEC’s website at http://www.sec.gov.
Contacts:
Media inquiries:
Jessica Burns, iCAD
+1-201-423-4492
Investor relations:
Jonathan Wexler
+1-203-247-8767