Advanced Life Sciences gets $4 million revolver via Leaders Bank

By Angela McDaniels

Seattle, April 20 - Advanced Life Sciences, Inc. secured a $4 million revolving line of credit due Jan. 1, 2008 on Tuesday, according to an 8-K report filed with the Securities and Exchange Commission.

Borrowings under the revolver carry an annual interest rate of 675 basis points and are secured by substantially all of the company's assets, excluding any rights the company may gain as a result of its license agreement with Abbott Laboratories for cethromycin.

The loan agreement also provides for, among other things, the release of guarantees by Flavin Ventures LLC president John L. Flavin and chief executive officer Michael Flavin and his wife. Flavin Ventures is the controlling member of ALS Ventures LLC, Advanced Life Science's largest stockholder.

The revolver replaces the company's existing $4 million business loan agreement with The Leader Bank, according to the filing.

Additionally, the company said it amended its lease agreement with BioStart Property Group LLC, a wholly owned subsidiary of Flavin Ventures LLC, that allows the company to reduce its required rental payments to BioStart to offset for any shared expenses between the company and other tenants in the building.

Woodbridge, Ill.-based Advanced Life Sciences discovers, develops and commercializes novel drugs for the treatment of infectious diseases, inflammation and cancer.

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