Numerex Corp. has entered into a strategic financing agreement with Laurus Master Fund, allowing it to close on a private placement of $4.5 million.
The net proceeds from the private placement, Numerex says, will be used primarily for the repayment of $3.5 million of the company’s short-term debt to Cingular and to provide additional working capital.
“We are very pleased with the confidence in Numerex shown by the Laurus,” said Stratton Nicolaides, chairman and CEO of Numerex. “We believe that the structure of this transaction — is indicative of that confidence–. We believe that our recent product launches coupled with a stronger business environment have improved the company’s long-term prospects. As a result, we selected this particular path of financing rather than relying on asset sales to meet our short term financial obligations.”
Atlanta-based Numerex (Nasdaq: NMRX) also issued warrants to Laurus to purchase a total of 300,000 common shares.
“We believe that Numerex has significant opportunities for growth with an experienced management team,” said David Grin, fund manager of Laurus. “We look forward to participating in that growth and anticipate a long-term, mutually beneficial relationship.”