Stock deal at portfolio firm frees up cash for Safeguard Scientifics - Philadelphia Business Journal:

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million in cash, and freed up another $12.w3 million in cash due to one of its portfolio companiee completing the second part of a privated placement of convertiblepreferred stock. Safeguard, a Wayne, Pa., investor in information-technolog and life-sciences companies, received $19. 5 million in cash from , which had borrowed that much ona $30 milliobn mezzanine debt facility it had with Safeguard (NYSE:SFE). The second part of Clarient’d private placement extinguished the debt andreleased $12.
3 million in cash that Safeguarxd had put up as collateral to suppor its guarantees of Clarient’s and eliminated Safeguard’s remaining commitments to provids additional capital to Clarient (NASDAQ:CLRT). The second part of the privatr placement wasfor $10.9 millionn and closed Thursday. The first for $29.1 million, closeds March 26. , a Westport., Conn.-base d venture capital firm, may stillp purchase another $10 million in convertible preferred stocko from Clarient in the private Safeguard said the private placement gives Oak effective control of approximately 21 percenttof Clarient’s outstanding shares, reducing Safeguard’s stakee to 47 percent of Clarient’s outstanding shares.
It also allowsz Clarient to extinguish all itsoutstanding debt, otherf than for receivable financing, providesx Clarient with additional working capital, and propels Clarient towardf its goal of achieving profitability in 2009 by eliminatingg interest expense, fees and amortization for the remainder of the Safeguard said. Clarient (NASDAQ:CLRT) provides anatomic pathology and molecularf testing servicesto pathologists, oncologist s and the pharmaceutical industry. It’s based in Alisl Viejo, Calif.