NUSCRIPTRX TM Closes $13 Million Financing Led by Council Capital
Four TNInvestco Funds Among Syndicate
Nashville, Tenn., Sept. 19, 2011 – NuScriptRX, a Nashville-based mail order institutional pharmacy, has closed on a $13 million financing package, including an $8 million Series C led by Council Capital and a $5 million credit facility from Square 1 Bank.
In addition to Council Capital, the Series C includes four existing investors: Clayton Associates of Nashville, Tenn., Council Operating Partner Linwood A. (Chip) Lacy, Jr., an additional strategic investor and Council & Enhanced Tennessee Fund, a TNInvestco fund affiliated with Council Capital. Four new investors in the round include Envest of Virginia Beach, Va. and three other TNInvestco funds – Nest-TN of Tullahoma, Tenn., Tennessee Angel Fund of Nashville, Tenn. (an affiliate of Nashville Capital Network) and Innova of Memphis, Tenn.
“NuScriptRX’s innovative national business model of supplying prescription medications to long-term care facilities is focused on lowering costs through a reduction in medication waste and improving access with an increase in nurse productivity and patient safety. NuScriptRX has grown its revenue run-rate by greater than 150 percent over the last eight months,” said Ed Mercadante, NuScriptRX CEO. “With this financing, the market has recognized our hyper-growth mode. The number of new customers in our pipeline continues to increase, sustaining our current growth trajectory.”
Council Capital Managing General Partner Dennis C Bottorff serves as chairman of the NuScriptRX board of directors. Two other members of the Council Capital CEO Council, Chip Lacy and Donald B. Taylor, Clayton Associates Managing Director Matt King and NuScriptRX CEO Mercadante also serve on the board currently. As a part of the transaction, David L. Kaufman of Envest and Ken Woody of Innova will join the board.
“We’re very pleased with the high level of investor interest in NuScriptRX’s phenomenal growth and transformation of the institutional pharmacy industry,” Bottorff said. “NuScriptRX is exactly the kind of company the TNInvestco program was intended to foster. The four TNInvestcos have invested a total of $3.4 million in NuScriptRX, which is the largest amount collectively invested by TNInvestcos in a single company.”