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Vericel (VCEL) running out of cash, expands credit line - BUY

September 12, 2016 9:05am

Enters into expanded $20 M Credit Facility and Term Loan with Silicon Valley Bank and MidCap Financial Services

Vericel Corporation (VCEL) has entered into an expanded term loan and revolving line of credit agreement with Silicon Valley Bank and MidCap Financial Services (MidCap Financial), providing access to up to $20 M of capital to the company to be used for general corporate purposes.

The Bottom Line: As of the end of Q2, Vericel had an outstanding balance of $2.4 M under an existing agreement with Silicon Valley Bank which will be replaced with the expanded facility with Silicon Valley Bank and MidCap Financial.

The real issue is the incapacity to access the capital markets

VCEL closed down -$0.04 t0 $2.20 on Friday. The “line” extension should be looked at as positive but, still piles on the leverage beyond the cash generated by revenues which they have versus most …

35 companies, 1 interpreter!

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