Selway Capital Acquisition Corporation announced that the company and three of its subsidiaries, Prescription Corporation of America, Healthcare Corporation of America and PCA Benefits Inc., signed a loan and security agreement.  Selway filed a Form 8-K with the US Securities and Exchange Commission which includes the detailed description of the loan and security agreement.

The agreement is for a five year convertible loan worth US$5 million from Partners for Growth III L.P. The loan is convertible into Series C common stock at an initial rate of 8.00 a share. Based on the agreement terms, the interest on the loan will be payable with an interest rate of 5.25% per annum. The interest rate is subject to a rate reduction that will be based on certain market conditions.

Selway Capital Acquisition Corporation is a newly formed publicly-traded company with the purpose of merging with an operating business. Selway's goal is to merge with businesses with profitability, scale and growth potential to be a successful, publicly-traded company.