West Palm Beach, Florida, April 2007 – The ComVest Group has provided $8.0 Million in financing in the form of a $5M term loan and a $3M revolving loan facility for AFP Imaging Corporation (“AFP”) which will be used to retire a current revolver and fund the acquisition of Quantitative Radiology (“QR”), permitting AFP to expand their market. ComVest will also receive warrants to acquire 800,000 common shares of AFP.
The acquisition of QR will enable AFP to manufacture equipment that produces computer generated, three dimensional x-ray images, which are a dynamic improvement over the 2 dimensional film images and offer significantly more diagnostic information to implantologists, orthodontists and maxillofacial and ENT surgeons.
Founded in 1978 by the two current co-CEO’s, New York based AFP has been engaged in the business of manufacturing and distributing equipment for generating medical, veterinary and dental images via 2-dimensional digital technology, as well as the manufacturing of analog x-ray imaging equipment and supplies. Typical end-users of AFP’s products include small medical centers, group dental practices, clinics, and imaging centers.
About Quantitative Radiology
Incorporated in 1990 in Verona, Italy, privately held QR manufactures and distributes equipment that creates 3D imaging systems and software, sold directly to Italian end users, and uses a worldwide distributor network for sales into the international market. QR’s core product, NewTom G3, acquires 360 degree individual x-rays utilizing technology which acquires highly precise images with much lower radiation and x-ray exposure to patients.
The ComVest Group is a Leading Private Equity Firm focused on investing in middle-market companies. Since 1988 ComVest has invested more than $2 billion of equity capital in over 200 public and private companies worldwide. Through our extensive financial resources and broad network of industry experts, we are able to offer our companies total financial sponsorship, critical strategic support, and business development assistance. Their focus is centered on building industry leading companies and creating long term value for equity holders. For more information on ComVest, visit www.comvest.com.
Included in this release are “forward-looking statements.” Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations reflected in such forward-looking statements will prove to have been correct. The Company’s actual results could differ materially from those anticipated in the forward-looking statements. The Company refers you to the cautionary statements and risk factors set forth in the documents it files with the Securities and Exchange Commission, including its most recent 10-KSB. The Company is not under any obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.