Two private equity firms have agreed to invest $1.5 million and gain board seats at AFP Imaging Corp., an Elmsford-based company that makes medical, dental and veterinary imaging products.
The investments by BioWave Innovations LLC and ComVest Capital LLC come at a time of widening losses for AFP and a sharp decline in its stock price.
With annual sales of about $30 million, the company said that its imaging equipment is installed in more than 100,000 dental and medical offices globally. But AFP, struggling to turn a profit in recent quarters, reported a loss of $1.98 million during its fiscal third quarter. The company’s stock is down 50 percent during the past year. News of the investment pushed the shares up 2 cents today to 5 cents.
The private equity firms will provide AFP with growth capital and debt restructuring.
“The added investment by BioWave Innovations and ComVest will immediately help stabilize and improve the company’s financial condition during this difficult economic climate so that AFP may continue to thrive and grow,” Chief Executive Officer David Vozick said in a written statement.
The private equity investors will assume two board seats at AFP in the aftermath of their investment. R. Scott Jones, managing director of BioWave Innovations, will become the chairman of AFP. Gary Jaggard, fund manager of ComVest Capital, will join the board. Jack Becker and Robert Blatt, current Board members of AFP, will retire. AFP founders Vozick and Donald Rabinovitch will stay on the board and remain as chief executive officer and president respectively.
“We expect to build on the company’s long history and solid reputation as a leader in its marketplace,” Jones said.
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