NEW CASTLE, Del., Aug. 23, 2012 (GLOBE NEWSWIRE) -- 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.
For more information please visit: www.ScripsAmerica.com.
Safe Harbor Statement
This release includes forward-looking statements, which are based on certain assumptions and reflects management's current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions, sector changes and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify and develop and achieve commercial success; the level of expenditures necessary to maintain and improve the quality of services; changes in the economy; changes in laws and regulations, including codes and standards, intellectual property rights, and tax matters; or other matters not anticipated; our ability to secure and maintain strategic relationships and distribution agreements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.