Chalfont, PA. ClearPoint Business Resources, Inc. (Nasdaq: CPBR), a provider of innovative workforce management solutions, today announced it has obtained new capital of $12 million from ComVest Capital, LLC (“ComVest”) in the form of a $9 million term loan (before an original issue discount of $1 million) and a $3 million revolving credit facility. In addition, our existing lenders have agreed to remain as financial partners with ClearPoint in a subordinated position to ComVest.
Mike Traina commented, “We are very pleased with the endorsement by ComVest of our iLabor business model. This is a significant step forward in providing the necessary working capital to accelerate the growth in iLabor and a key milestone in our transition from our legacy staffing business to our iLabor technology platform.”
Mr. Traina added, “We believe the iLabor business model coupled with our new capital clearly positions us as the primary alternative to the vendor management (VMS) industry. The new capital provides us with the financial stability to expand our supplier network and attract new customers to solidify our position as a leader in helping companies manage their usage of temporary labor.”
About ClearPoint
ClearPoint Business Resources, Inc. (“ClearPoint”) is a workforce management solutions provider to clients ranging from small businesses to Fortune 500 companies. ClearPoint’s iLabor network is a proprietary technology-based platform that provides its clients with a comprehensive web-based portal to streamline the process involved in procurement and management of temporary labor. Orders placed by ClearPoint’s clients are fulfilled through a network of ClearPoint-approved staffing vendors. The iLabor platform provides a virtual marketplace for the electronic procurement (“e-procurement”) of temporary labor and provides the client with one contract and one contact point to order temporary labor on a national scale. iLabor is an on-demand e-procurement solution that is hosted by ClearPoint which eliminates the need for clients to install and maintain costly hardware and software applications. The client can access iLabor through standard Internet connections and web browsers, and is assigned access codes and account information, eliminating the need for time consuming and costly systems integrations. The iLabor platform provides real-time feedback on all posted positions and provides a centralized reporting mechanism for clients to review and monitor their spending on temporary labor on a national basis. The iLabor network is a technology-based procurement method that provides a low cost and easy alternative for ClearPoint’s clients, as well as traditional staffing companies in the industry, to procure temporary labor through a large ClearPoint-approved staffing vendor network that has broad national coverage. The iLabor platform is a fully scalable product offering that can accommodate significant growth in transaction volumes for ClearPoint without significant increases to the Company’s existing cost structure.