Response Genetics (RGDX -10.9%) enters into a credit agreement with SWK Funding LLC for a multi-draw term loan for up to $12M. On the closing date of the agreement, July 30, 2014, SWK advanced the company $8.5M which is due on July 30, 2020.
Under the terms of the agreement, the loan will bear an interest rate of LIBOR plus 12.5%.
SWK also receives a warrant to purchase 681,090 shares of RGDX common stock at $0.936 per share. It may exercise the warrant on a cashless basis at any time. RGDX currently trades at $0.70 per share.