CathRx borrows to cover short term expenses

Sydney-based medical device company CathRx (ASX:CXD) has secured a $1 million loan from Rockwell Securities Limited to cover short term expenses until such time as a larger capital raising can be completed.

The loan has a three year term at 10% interest and is secured by a fixed and floating charge over the Company’s assets.

According to CathRx CEO, Denis Hanley, the loan is to cover some peak demands in spending that are required to advance new product development.

He also expects to have completed a $2 million capital raising within the next couple of months which, together with the $1m loan, should give the company two years of coverage.

CathRx has recently struggled to keep its share price aloft, dropping 95% over FY 2011-2012 and posting a $8.9m loss.

The company also announced in May that it was seeking to delist from the ASX and prep itself for sale to prospective buyers in the United States.

CathRx (ASX:CXD) shares were trading level at 1.4c as of 12.30pm Tuesday.