InfoLogix seeking to raise $23M
Philadelphia Business Journal - by Peter Key Staff Writer
InfoLogix Inc. said Friday it has signed a nonbinding term sheet on a deal that would enable it to raise up to $23 million and meet the conditions of an agreement it reached with a senior lender last month.

The Hatboro, Pa., provider of mobile-technology products and services to hospitals and manufacturers said Friday after the markets closed that it has filed with the Securities and Exchange Commission a preliminary proxy statement for a special shareholders meeting at which it intends to seek approval of a proposed recapitalization plan.

The filing was related to the term sheet, which InfoLogix said it signed Thursday with NewSpring Capital LLC of Radnor, Pa. The term sheet governs a purchase by NewSpring and a syndicate of undetermined investors of up to $23 million in InfoLogix (NASDAQ:IFLG) convertible preferred stock and warrants to buy InfoLogix common stock.

The recapitalization appeared to be far from a done deal. In the press release announcing it, InfoLogix (NASDAQ:IFLG) said: “To the extent that it is consummated at all, the recapitalization plan as described in the preliminary proxy statement … is subject to change based upon negotiation of the final terms and execution of the definitive agreements.”

InfoLogix filed the proxy statement one day after a deadline for filing a proxy or registration statement relating to an attempt to raise at least $12 million by selling stock or subordinated debt.

The deadline was the result of an agreement reached between InfoLogix and Hercules Technology Growth Capital Inc., which provided InfoLogix with $25 million in senior debt in May 2008.

Under the loan and security agreement governing the senior debt financing, InfoLogix had until July 31, 2009, to file a proxy or registration statement relating to an attempt to raise at least $12 million by selling stock or subordinated debt.

On July 31, InfoLogix and Hercules reached an agreement that extended the deadline to Aug. 20 and required InfoLogix to pay Hercules a forbearance fee of $412,171.41.