(via Thenewswire.ca)
VANCOUVER, BC / TheNewswire / September 30, 2016 - HealthSpace Data Systems Ltd. (the “Company” or “HealthSpace”) is pleased to announce it has closed its previously announced
offering of $1,500,000 in secured convertible debentures (the “Debenture Offering”) and the first tranche of its previously
announced offering of units consisting of one common share in the capital of the Company (a “Share”) and one half of one Share
purchase warrant (each whole Share purchase warrant, a “Warrant”) (the “Units”) at a purchase price of $0.05 per Unit for gross
proceeds of $1,595,352 for 31,907,040 Units (the “Equity Offering”, and together with the Debenture Offering, the
“Financing”).
The Debenture Offering consists of $1,500,000 in secured convertible debentures with a maturity
date of two years following closing of the Debenture Offering, at an interest rate of 10% per annum, and a conversion price equal
to CAD $0.075 per Share in the first 12 months from issuance of the Debenture and CAD $0.10 per Share thereafter.
The Equity Offering was oversubscribed, and increased to a maximum of 36,000,000 Units, of which
31,907,040 Units have been issued pursuant to the closing of the first tranche. Each Warrant is exercisable to purchase a
Share for a period of twelve months at an exercise price of $0.075 per Share, and is subject to acceleration in accordance with the
terms disclosed in the Company’s news release of August 11, 2016.
In connection with the Financing, certain directors of the company participated in the sale of
Shares held by such directors for 2,749,000 common shares at $0.055 per share
(the “Sale”). The funds from the sale has been used to facilitate the directors’ subscription in this placement. In
connection with the Sale, the company will pay a fee of $10,000 to Canaccord Genuity Corp.
The Company paid commissions to eligible finders consisting of total cash commissions
of $38,337 and the issuance of a total of 316,740 finders’ Warrants, in addition to 2,000,000 Shares issued by the Company to
Canaccord Genuity Corp in connection with their services as an eligible finder for the Financing. Each finders’ Warrant
entitles the holder to purchase one common share of the company at a price of $0.075 cents per common share for a period of twelve
months.
The proceeds of the Financing will be used by Healthspace to retire a $2,185,000
debt facility with R.C. Morris & Company Special Opportunities Debt Fund II Limited Partnership and for general working capital
purposes.
“We are very pleased to complete this financing which will retire the high yield debt facility and
improve the balance sheet of the Company,” commented Ali Hakimzadeh, Chairman of HealthSpace. “With this financing completed
and our balance sheet restructured we are now highly focused on our sales initiatives of the HSCloud, HSTouch and HSData product
suites.”
The Company also announces a private placement for the settlement of $69,399.96 in debt
to three creditors for services provided to the Company through the issuance of 1,156,666 shares at a price of $0.06.
About HealthSpace Data Systems Ltd.
HealthSpace is an industry leader providing inspection, information and communication management
systems for federal, state, county and municipal governments. Over the last decade the Company has successfully developed
both enterprise and mobile internet-based applications currently serving over 300 state and local government
organizations across North America. Clients range in size from small county organizations to state-wide systems with over
910 concurrent users, as well as national programs. HealthSpace specializes in the field of developing, installing, and
maintaining inspection and regulatory management systems for environmental and public health organizations.
Forward-Looking Statements
This release may contain forward-looking statements. Forward-looking statements are statements
that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would",
"may", "could" or "should" occur. Although HealthSpace believes the expectations expressed in such forward-looking statements are
based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially
from those in forward looking statements. HealthSpace expressly disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information, future events or otherwise.
For more information please contact:
Warwick Smith, CEO
w@healthspace.com
+1 604 250 1737
Peter J. Kletas
PJK & Associates Inc.
866-999-6251-Toll Free
peter@pjkandassociates.com
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