NEW CASTLE, Del. -- ScripsAmerica Inc. (OTCBB:SCRC), a leading supplier of prescription, OTC and nutraceutical drugs, today announced that the Company has secured $1,000,000 in financing which it will use to develop, manufacture and distribute its RapiMed brand of children's pain reliever and other core business products.
ScripsAmerica has concurrently entered into two financing agreements with Development 72, LLC in order to acquire $1,000,000 in total funding. Development 72, LLC is a Florida-based private equity fund managed by Board Member of ScripsAmerica, Andrius Pranskevicius, that is focused on funding high potential companies in the Healthcare and Information Technology industries,
The first agreement entered into by ScripsAmerica is a four-year term $500,000 loan promissory note issued by Development 72, LLC while the second is a purchase order financing agreement that will be used to purchase orders of the Company's core business products. Purchase order financing involves a third party finance company paying for production, materials and 'work in progress' in exchange for a standard fee. This type of financing will allow ScripsAmerica to finance up to 100% of its supplier costs, enabling the Company to deliver more and larger orders.
CEO of ScripsAmerica, Bob Schneiderman, stated, "ScripsAmerica is very pleased to secure the funding necessary to ensure a successful product launch of RapiMed, currently slated for the first quarter of next year. The terms of this financing demonstrate the confidence that Development 72 has in our RapiMed line due to its unique rapid melting technology and ScripsAmerica's subsequent ability to generate revenue upon its launch."
"The company can now implement the most effective strategies for the development, manufacturing and marketing of RapiMed leading up to the launch without cash constraints, enabling us to grow faster and focus on meeting market demand. This financing also enables ScripsAmerica to direct its own cash resources and profit from product sales into other business areas such as marketing and new product development in the future," continued Schneiderman.