Dynasil Corporation of America (NASDAQ: DYSL), a leader in the development and manufacture of detection and analysis technology, today announced that it has completed a $3 million subordinated note financing with Massachusetts Capital Resource Company (MCRC) pursuant to a Note Purchase Agreement.
Dynasil has used the proceeds from the Note Purchase Agreement to repay in full approximately $1.9 million in promissory notes issued in connection with a put right exercised by a former owner of RMD Instruments, LLC, which Dynasil acquired in 2008. The remaining $1.1 million of proceeds will be used for the Company’s working capital.
“Our financing agreement with MCRC is a significant liquidity event for Dynasil,” said Peter Sulick, Dynasil’s Chairman and Interim CEO and President. “The financing replaced the short term and long term liability associated with the promissory notes with long term fixed-rate debt. This new MCRC debt is interest-only for three years. It also strengthened our balance sheet with an additional $1.1 million of working capital. Completion of the Note Purchase Agreement and payment of the promissory notes has allowed the Company to reclassify approximately $7.6 million of the debt owed under its bank credit agreement as long-term debt, thereby eliminating balance sheet uncertainty associated with the retired promissory notes. In addition, this financing satisfies one of the requirements of our amended bank credit agreement by raising at least $2.0 million in additional debt or equity by September 30, 2012.”
“We are very pleased to have the opportunity to support Dynasil, an innovative and dynamic Massachusetts based company,” said Suzanne Dwyer, MCRC Vice President. For more than thirty years, MCRC has provided mezzanine capital and long term debt to businesses which have operations in Massachusetts. MCRC takes a long term investment perspective, working with management, entrepreneurs and investors to build growing, profitable companies.
About Massachusetts Capital Resource Company
Massachusetts Capital Resource Company is a limited partnership privately owned and funded by Massachusetts-based life insurance companies. MCRC is a source of risk capital for Massachusetts business and invests across the entire range of business development financings, with a particular emphasis on growth capital. MCRC has invested more than $600 million in over 300 companies. More information can be found at
Dynasil Corporation of America (NASDAQ: DYSL) develops and manufactures detection and analysis technology, precision instruments and optical components for the homeland security, medical and industrial markets. Combining world-class technology with expertise in research and materials science, Dynasil is commercializing products including dual-mode radiation detection solutions for Homeland Security and commercial applications, probes for medical imaging and sensors for non-destructive testing. Dynasil has an impressive and growing portfolio of issued and pending U.S. patents. The Company is based in Watertown, Massachusetts, with additional operations in Mass., Minn., NY, NJ and the United Kingdom. More information about the Company is available at
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