Fresenius Invests in Apollo MedicalMonday, March 31, 2014
Apollo Medical Holdings Inc. announced on Monday it has secured up to $12 million in capital from Fresenius Medical Care North America, a chain of dialysis clinics in Waltham, Mass.
Apollo, a Glendale company that provides doctors to hospitals, said the money is a mix of debt and equity. Fresenius will buy 2 million shares of Apollo stock for $1 each. It also will provide $8 million in loans and revolving credit, and will buy $2 million in convertible notes.
The investment follows a May deal in which Apollo agreed to provide care management for patients with end-stage kidney disease being treated at clinics operated by Fresenius Medical Care, a unit of Fresenius SE & Co. KGaA, a global health care provider based in Bad Homburg, Germany.
In exchange for the investment, Fresenius will get one seat on the Apollo board, as well as any subsidiary boards and committees.
Apollo Chief Executive Warren Hosseinion and Executive Chairman Gary Augusta said in an email that the company plans to use the money for growth initiatives.
“The investment is part of our growing strategic partnership with Fresenius, the nation’s leading provider of products and services for patients with end-stage renal disease,” the email stated.
Shares closed up 2 cents, or 3.8 percent, to 55 cents in over-the-counter trading.