September 3, 2009 (FinancialWire) — Pacific Biometrics, Inc. (OTCBB: PBME) (Current Market Cap: $18.72 Mil.) said it has entered into a loan and security agreement with board member Terry M. Giles, providing for a $4 million loan to the company.

In connection with the deal, the company also repurchased 2,391,906 shares of common stock from certain stockholders $0.70 per share. The shares will be retired to the company’s treasury.

Pacific Biometrics received net loan proceeds of around $2,325,666, after payment for the stock repurchase.

Giles has since resigned from the company’s board.

The four-year loan bears interest at a fixed rate of 12% per year. It provides for eight monthly interest-only payments, followed by 40 monthly payments comprised of interest plus the amortization of principal. The company is also obligated to pay a quarterly finance fee of $12,000 to Giles during the term of the Loan.

Pacific Biometrics said it also has the right to obtain an additional $500,000 loan from Giles during the first 12 months of the loan.

The agreement required that the company use a portion of the proceeds to repurchase up to a maximum of 2.4 million shares of common stock held by certain stockholders, as designated by Giles.

Seattle-based Pacific Biometrics provides specialized reference laboratory and contract research services to support pharmaceutical and diagnostic manufacturers conducting human clinical trial research, including expert services in the areas of cardiovascular disease, diabetes, osteoporosis, arthritis, and nutrition.

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