CAS Medical Systems Inc. obtained financing from a California lender in exchange for potential equity in the Branford maker of blood-oxygen sensors.
The financing package from East West Bank, a subsidiary of East West Bancorp., of Pasadena, Calif., consists of a $3.5 million three-year secured term loan at 5.5 percent, and a $2.5 million revolving line of credit, with a minimum 5.25 percent rate, expiring in January 2014.
CEO Thomas M. Patton said proceeds will provide working capital.
As part of the borrowing, CAS Med issued to East West Bank a five-year warrant to purchase 133,333 shares of its common stock at $1.80 a share.
CAS Med’s stock traded early Thursday up 2 cents, at $1.74.
