Precipio Secures a short-term $500K Credit Facility
May 06 2024 - 5:00PM
Specialty cancer diagnostics company Precipio,
Inc. (NASDAQ: PRPO), announces it has secured a short-term
loan facility of $500K to deal with any delays in cash collections
due to the recent cybersecurity attack on Change Healthcare, a
healthcare billing company used by a significant part of the
healthcare market.
Many healthcare businesses, including Precipio’s
Diagnostic Services division, rely on Change Healthcare (CH) to
submit bills and collect cash from various payors and insurance
companies for the services they provide. CH experienced a widely
publicized cybersecurity attack in early 2024 that impacted the
daily flow of cash receipts to the company and, as discussed at the
shareholders' call on April 1, 2024, has impacted its cash
reserves.
As mentioned on the call, payments from
customers of Precipio’s Products division are not processed through
CH and were not impacted by the cybersecurity event. Additionally,
no cybersecurity attack affected Precipio’s own IT
infrastructure.
Under the terms of the facility, the company
will draw down the first $250K immediately; and can access an
additional $250K in a future time, at its discretion. The company
can repay any amount of the loan at any time without prepayment
penalties; and it will only pay interest on amounts actually
borrowed.
“We are addressing a short-term operational
situation with the appropriate financing tool to remedy the
problem, and ensure the company maintains adequate operating
liquidity,” said Ilan Danieli, Precipio’s CEO. “We believe this is
a short-term situation rather than a material change to the
business, and therefore we felt that a loan facility that the
company can access and pay back at its discretion is a suitable
vehicle. We are committed to the continued path towards
profitability, and believe this is a temporary bump in that
road.”
About Precipio
Precipio is a healthcare biotechnology company
focused on cancer diagnostics. Our mission is to address the
pervasive problem of cancer misdiagnoses by developing solutions in
the form of diagnostic products and services. Our products and
services deliver higher accuracy, improved laboratory workflow, and
ultimately better patient outcomes, which reduce healthcare
expenses. Precipio develops innovative technologies in our
laboratory where we design, test, validate, and use these products
clinically, improving diagnostic outcomes. Precipio then
commercializes these technologies as proprietary products that
serve the global laboratory community and further scales Precipio’s
reach to eradicate misdiagnosis. For more information, please visit
www.precipiodx.com.
Please follow us on LinkedIn, Twitter
@PrecipioDx and on Facebook.
Forward-Looking Statements
This press release contains “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, including, among others, including other
financial projections and potential market opportunity, plans and
prospects. Except for historical information, statements about
future volumes, sales, growth, costs, cost savings, margins,
earnings, earnings per share, diluted earnings per share, cash
flows, plans, objectives, expectations, growth or profitability are
forward-looking statements based on management’s estimates,
beliefs, assumptions and projections. Words such as “could,” “may,”
“expects,” “anticipates,” “will,” “targets,” “goals,” “projects,”
“intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,”
and variations on such words, and similar expressions that reflect
our current views with respect to future events and operational,
economic and financial performance, are intended to identify such
forward-looking statements. These forward-looking statements are
only predictions, subject to risks and uncertainties, and actual
results could differ materially from those discussed. We caution
investors not to place undue reliance on the forward-looking
statements contained in this press release. You are encouraged to
read our filings with the SEC, available at www.sec.gov, for a
discussion of these and other risks and uncertainties Important
factors that could affect performance and cause results to differ
materially from management’s expectations, or could affect the
company’s ability to achieve its strategic goals, includes factors
that are described in the sections entitled “Risk Factors” and
“Management’s Discussion and Analysis” in the company’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2023, as
updated from time to time in the company’s Securities and Exchange
Commission filings. The company’s forward-looking statements in
this press release are based on management’s current views,
beliefs, assumptions and expectations regarding future events and
speak only as of the date of this release. The company undertakes
no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by the federal securities
laws.
Inquiries:
investors@precipiodx.com
+1-203-787-7888 Ext. 523
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