BELGRADE, Mont., Jan. 20, 2011 /PRNewswire/ -- Bacterin International Holdings, Inc. ("Bacterin") (OTC Bulletin Board: BIHI), today announced that it has closed on the Bridge Bank, N.A. revolving accounts receivable line of credit facility for up to $5 million that was announced on November 22, 2010. The financing, which is secured by the Company's accounts receivable and other assets, has a 2 year term and carries an interest rate of the Bridge Bank prime rate plus 2.25%. The draw-down of funds is based upon borrowing up to 80 percent of eligible accounts receivable subject to typical borrowing base and asset coverage restrictions and other performance milestones.
Founded in 2001, Bridge Bank (Nasdaq: BBNK) is a full service professional business bank dedicated to meeting the financial needs of small, middle-market, and emerging technology businesses in Silicon Valley, California, and the nation.
The credit facility with Bridge Bank follows the announcement of an asset backed lending facility of up to $8 million with Western Technology Investment ("WTI") that was completed on November 22, 2010. WTI provided Bacterin an immediate draw-down of $2.5 million in November, 2010. The WTI facility offers an additional $2.5 million through April 30, 2011, upon the achievement of certain performance based milestones through March 31, 2011. The agreement also contains provisions for the potential draw-down of up to $3 million based upon Bacterin raising additional levels of equity capital.
John Gandolfo, CFO of Bacterin commented, "The completion of this credit facility with Bridge Bank provides Bacterin with the additional capital to execute on our current growth plans. We expect to utilize the proceeds of the facility for general working capital purposes and to cover the cost of expected increases in inventory purchases as our revenues and hospital account base continue to grow. Our product penetration into hospitals is indeed gaining momentum. During the fourth quarter of 2010, we secured an additional 177 hospitals that now stock Bacterin biologic product on their shelves, versus 96 new hospital accounts in the prior third quarter period."About Bacterin International H oldings, Inc. Bacterin International Holdings, Inc. ("Bacterin") develops, manufactures and markets biologics products to domestic and international markets. Bacterin's proprietary methods optimize the growth factors in human allografts to create the ideal stem cell scaffold and promote bone and other tissue growth. These products are used in a variety of applications including enhancing fusion in spine surgery, relief of back pain by facet joint stabilization, promotion of bone fusion in foot and ankle surgery, promotion of cranial healing following neurosurgery and subchondral bone defect repair in articulating joint surgeries.