Computer-aided detection (CAD) and radiation therapy firm iCAD has terminated the revenue-sharing component of its debt facility agreement with Deerfield Management Company.
Effective April 28, the agreement was terminated in exchange for a cash payment of $4.1 million to Deerfield. Under this portion of the debt facility, iCAD historically paid Deerfield an average of 4% of revenues, which had an annual cash cost to iCAD of approximately $1.3 million in fiscal year 2013. Additionally, iCAD has amended the facility agreement to eliminate its ability to extend the final payment date for a year.
Separately, iCAD announced that Deerfield has exercised 450,000 warrants to purchase shares of iCAD common stock, which were issued as part of the debt facility, generating proceeds to iCAD of approximately $1.6 million. The net cash impact to iCAD from these two transactions is approximately $2.5 million.
