NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
CINCINNATI, March 07, 2019 (GLOBE NEWSWIRE) -- Protech Home Medical Corp. (the "Company")
(TSXV: PTQ) is pleased to announce that it has completed its previously announced bought deal private placement of unsecured
convertible debentures (the "Convertible Debentures") for gross proceeds of $15 million, including the full
exercise of the underwriters' option (the "Offering"). The Offering was conducted by a syndicate of underwriters
led by Beacon Securities Limited, and including Canaccord Genuity Corp. and Haywood Securities Inc. (collectively, the
"Underwriters").
The Convertible Debentures bear interest from the date of closing at a rate of 8.0% per annum, payable
semi-annually in arrears on the last day of June and December in each year and will mature on March 7, 2024 (the "Maturity
Date").
The principal amount of the Convertible Debentures are convertible into common shares of the Company
("Common Shares") at the option of the holder at any time prior to the close of business on the last business day
immediately preceding the Maturity Date at a conversion price of $1.30 per Common Share (the "Conversion Price").
At any time after the date that is three years following the closing date, the Company may force the conversion of the principal
amount of the Convertible Debentures at the Conversion Price on not less than 30 days' notice if the daily volume weighted average
trading price of the Common Shares is greater than $1.62 for any 20 consecutive trading days.
The Company paid to the Underwriters a cash commission equal to 4.5% of the gross proceeds raised under the
Offering. The Company also issued to the Underwriters compensation options entitling the Underwriters to purchase 519,231 Common
Shares (equal to 4.5% of the aggregate number of Common Shares issuable by the Company under the Convertible Debentures), at an
exercise price of $1.30 per Common Share for a period of 24 months from the closing of the Offering.
The net proceeds from the Offering are expected to be used for debt repayment, working
capital and general corporate requirements. All securities issued in connection with the Offering are subject to a hold period that
will expire four months and one day from closing of the Offering.
In addition, subject to the Company fulfilling the listing requirements of the TSX Venture
Exchange ("TSXV"), the TSXV has conditionally accepted the listing of the Convertible
Debentures on the TSXV which is anticipated to commence on or about July 8, 2019, upon expiry of the four month hold
period.
For further details on the Offering, please refer to the Company's news release dated February 15, 2019.
ABOUT PROTECH HOME MEDICAL CORP.
The Company provides in-home monitoring and disease management services for patients in the United States
healthcare market. The primary business objective of the Company is to create shareholder value by offering a broader range of
services to patients in need of in-home monitoring and chronic disease management. The Company's organic growth strategy is to
increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient's services and
making life easier for the patient.
For further information please visit our website at www.protechhomemedical.com, or contact:
Hardik Mehta
Chief Financial Officer
Protech Home Medical Corp.
859-300-6455
investorinfo@myphm.com
Neither the TSXV nor its Regulation Service Provider (as that term is defined in the policies of the TSXV)
accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Certain statements contained in this press release constitute "forward-looking information" as such term is
defined in applicable Canadian securities legislation. All statements other than statements of historical fact, included herein,
including without limitation: the listing of the Convertible Debentures; TSXV final approval of the Offering; and the use of
proceeds from the Offering; are forward-looking statements. Forward-looking statements are frequently, but not always, identified
by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or
statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. Such statements reflect
the Company's current views and intentions with respect to future events, and current information available to the Company, and are
subject to certain risks, uncertainties and assumptions, including, without limitation: the Company meeting the conditions of the
TSXV in their approval letter for the listing of the Convertible Debentures; and the TSXV providing final approval of the Offering
pursuant to their conditional approval letter. Many factors could cause the actual results, performance or achievements that may be
expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or
uncertainties materialize. Examples of such risk factors include, without limitation: failure of the TSXV to provide final approval
of the Offering or the listing of the Convertible Debentures; credit; market (including equity, commodity, foreign exchange and
interest rate); liquidity; operational (including technology and infrastructure); reputational; insurance; strategic; regulatory;
legal; environmental; capital adequacy; the general business and economic conditions in the regions in which the Company operates;
the ability of the Company to execute on key priorities, including the successful completion of acquisitions, business retention,
and strategic plans and to attract, develop and retain key executives; difficulty integrating newly acquired businesses; the
ability to implement business strategies and pursue business opportunities; low profit market segments; disruptions in or attacks
(including cyber-attacks) on the Company's information technology, internet, network access or other voice or data communications
systems or services; the evolution of various types of fraud or other criminal behavior to which the Company is exposed; the
failure of third parties to comply with their obligations to the Company or its affiliates; the impact of new and changes to, or
application of, current laws and regulations; decline of reimbursement rates; dependence on few payors; possible new drug
discoveries; a novel business model; dependence on key suppliers; granting of permits and licenses in a highly regulated business;
the overall difficult litigation environment, including in the U.S.; increased competition; changes in foreign currency rates;
increased funding costs and market volatility due to market illiquidity and competition for funding; the availability of funds and
resources to pursue operations; critical accounting estimates and changes to accounting standards, policies, and methods used by
the Company; and the occurrence of natural and unnatural catastrophic events and claims resulting from such events; as well as
those risk factors discussed or referred to in the Company's disclosure documents filed with the securities regulatory authorities
in certain provinces of Canada and available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or
should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially
from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this
cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking
information. The forward-looking information included in this press release is made as of the date of this press release and the
Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable
law.
