$1.2 M Convertible Note Financing & $1.4 M Equity P.P /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
Proposed Investments Would Provide the Capital to Accelerate the Runway for Growth Across Business Units and Continue Medivolve's Mission to Deliver Value to Shareholders
TORONTO, Aug. 26, 2021 /CNW/ - Medivolve Inc. ("Medivolve" or the "Company") (NEO: MEDV) (FRA: 4NC), a healthcare technology and services company, today announced a secured convertible note financing in the amount of up to CAN $1.2 million and an equity private placement in the amount of up to CAN $1.4 million.
"This round of funding demonstrates Medivolve's ability to secure long-term capital partners who are committed to achieving the Medivolve vision of profitability, free cash flow and scaling," says David Preiner, CEO of Medivolve. "The value of our assets, the support investors are providing to the management team, and the opportunity for Medivolve's strategic positioning to unlock that value are all reflected in this investment."
CAN $1.2 Million Secured Convertible Notes
This investment will be in the form of secured convertible notes (the "Notes") offering for aggregate gross proceeds of up to CAN $1.2 million. Each Note will have a term of 18 months and will be convertible, at the option of the holder, into units (the "Units") at a price of $0.07 per Unit. The Note financing is subject to the completion of due diligence and definitive legal documentation and is anticipated to close on or about August 27, 2021.
Each Unit will consist of one common share of the Company and one common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder there of to acquire one common share of the Company at a price of $0.08 for a period of five years following the closing date of the Financing.
The convertible Notes each have a term of 24 months and the accounts receivables of the Company will secure the Notes to a ratio of 200% of the Notes.
CAN $1.4 Million Equity Private Placement
This investment will be in the form of a non-brokered private placement offering of units (the "Equity Units") at a price of $0.07 per Equity Unit for aggregate gross proceeds of up to $1.4 million (the "Offering"). Each Equity Unit will consist of one common share of the Company and one common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder thereof to acquire one common share of the Company at a price of $0.08 for a period of five years following the closing date of the Offering. The Offering is expected to close on or about September 9, 2021 and may close in tranches.
All securities issued in connection with the secured convertible Notes and with the Offering will be subject to a statutory hold period of four-months and one day. Each financing remains subject to a number of conditions, including final approval of the Neo Stock Exchange. Funds from each financing will be used for general working capital and to advance the Medivolve business.
Finder's fees may be paid to eligible finders in accordance with the policies of the Neo Exchange, consisting of a cash commission of up to 7% of the gross proceeds raised.
"In just the last few months, Medivolve has achieved a number of milestones including transitioning from a cash pay business model to primarily insurance reimbursements, optimizing operations through the implementation of our new EHR technology, establishing hiring initiatives, and successfully deploying on-site testing services," explains Preiner. "Also, we have already executed critical cost-cutting measures across the organization to ensure that this new capital is utilized the most fiscally responsible way. With access to up to CAN $2.6 Million, Medivolve can pursue both organic and acquisition-based growth opportunities, reach profitability, and become cash flow positive, further solidifying our plans to become a top SaaS-based health-tech company."
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful.