Full Press Release Details
Zynex Announces New and Expanded Credit Agreement and
Preliminary Fiscal Year 2009 Net Cash Balance
Zynex, Inc. (OTCBB: ZYXI),
a provider of pain management systems and electrotherapy products for medical
patients with functional disability, announces that Zynex, Inc. and its
subsidiary, Zynex Medical, have entered into a new 3-year revolving credit
facility of up to $3.5 million with CapitalSource Bank, a California
industrial bank, and have retired its prior credit agreement with Marquette
Healthcare Finance. The new credit agreement with CapitalSource will
provide a long-term facility for Zynex's plans of continued
growth. Zynex has not drawn any funds from the CapitalSource credit
facility at this time. Zynex will file a Form 8-K Report with
additional information on this new credit facility.
As previously stated, Zynex ended 2009 with no indebtedness
under its prior credit facility with Marquette Healthcare Finance. Zynex is
pleased to further report preliminarily a net cash balance as of December 31,
2009 of $862,000. Management views the cash generated during the third and
fourth quarters of 2009 as particularly impressive because the cash balance at
year-end is after the payment of a 2007 tax liability as well as the retirement
of the Anthem Wellpoint settlement; both of which, were paid off completely in
2009. Zynex is in the process of completing 2009 audited
Thomas Sandgaard, CEO of Zynex comments: "The credit
agreement with CapitalSource will give Zynex increased strategic
flexibility. We are very proud to announce that Zynex had $862,000 in
net cash at the end of the year even after paying off the entire Marquette
Healthcare Credit facility and before utilizing any of the new facility with
Capital Source. The recent move to our new headquarters as well as the addition
of this new credit facility improves Zynex' ability to take advantage of
strategic opportunities as they may arise while also representing a funding
source to run our existing business for the benefit of our
Zynex, Inc. (founded in 1996) engineers, manufactures,
markets and sells its own design of electrotherapy medical devices in two
distinct markets: standard digital electrotherapy products for pain relief and
pain management; and the NeuroMove(TM)
for stroke and spinal cord injury (SCI) rehabilitation. Zynex's product lines
are fully developed, FDA-cleared, commercially sold, an have been developed to
uphold the Company's mission of improving the quality of life for patients
suffering from impaired mobility due to stroke, spinal cord injury, or
debilitating and chronic pain.
Safe Harbor Statement
Certain statements in this release are "forward-looking"
and as such are subject to numerous risks and uncertainties. Actual results may
vary significantly from the results expressed or implied in such statements.
Factors that could cause actual results to materially differ from
forward-looking statements include, but are not limited to, the need to obtain
additional capital in order to grow our business, larger competitors with
greater financial resources, the need to keep pace with technological changes,
our dependence on the reimbursement from insurance companies for products sold
or rented to our customers, acceptance of our products by health insurance
providers, acceptance of our products by hospitals and clinicians, our
dependence on third party manufacturers to produce our goods on time and to our
specifications, implementation of our sales strategy including a strong direct
sales force, the uncertain outcome of pending material litigation and other
risks described in our 10-K Report for the year ended December 31, 2008 and
subsequent 10-Q reports.
Contact: Thomas Sandgaard, CEO or Taj Bayless, Director of
Investor Relations and Business Development. (303) 703-4906,