PAXMAN receives a 10 MSEK line of credit as a financial buffer to enable increased expansion rate in the US
PAXMAN announces that the company has received a 10 MSEK line of credit to be used as a financial buffer for initial costs related to signed contracts in the United States, while at the same time being able to increase the rate of expansion on this important market. The line of credit is estimated to be more than sufficient until the PAXMAN group can deliver a positive cash flow.
"Our strong rate of expansion in the United States has exceeded even our own expectations since our FDA clearance in April last year. This is of course very encouraging, and the demand continues to grow amongst both cancer patients and healthcare providers in different parts of the world that want to use our leading scalp cooling technology", says PAXMAN’s CEO Richard Paxman.
He emphasizes the importance of maintaining momentum in the USA. This short-term financing solution enables PAXMAN to continue to use the company's most successful business model, where PAXMAN provides cooling systems and initial training in exchange for a fixed fee per treatment.
"This line of credit provides us with the confidence and liquidity to execute our growth plans in the United States until the business model starts to provide a significant revenue stream. Based on strong US patient enrolment it may not need to be utilised. However, I want us to be prepared to also win additional major contracts in the United States without creating any concern regarding our financial situation. We see no need to raise additional capital as the cash flow will support our current business plan”, says Richard Paxman.
The 10 MSEK line of credit has been granted by Sparbanken i Karlshamn.
For further information, please contact:
Richard Paxman, CEO
Tel: +44 7968 020641
This information is information that PAXMAN AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 16:45 CET on 22nd January 2018.
The Paxman Scalp Cooling System has been developed by the Paxman family to reduce hair loss in breast cancer patients undergoing chemotherapy. The concept behind the system came when the mother of four, Sue Paxman, experienced first-hand the trauma of chemotherapy-induced hair loss. With close to 3,000 systems delivered in to hospitals, clinics and treatment centres around the world, PAXMAN is the leading supplier of Scalp Cooling technology. PAXMAN’s scalp-cooling cap is made from lightweight, biocompatible silicone that is soft and flexible, providing a snug yet comfortable fit during treatment. PAXMAN AB (publ) has its headquarters in Karlshamn (Sweden), with subsidiaries in Huddersfield (UK) and Houston, Texas (US)
The PAXMAN share is listed on Nasdaq First North. FNCA Sweden AB is the company’s Certified Adviser.