Healthscreen Secures Access to an Additional $1,000,000 in Working Capital
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TORONTO, ONTARIO, Apr 07 (MARKET WIRE) --
Healthscreen Solutions Inc. (TSX VENTURE: MDU), the leading Canadian
provider of physician practice enhancement services and electronic
medical record software, announced today that it has amended and
augmented its debt financing agreement with Wellington Financial LP
("Wellington") to gain access to approximately $1,000,000 in additional
working capital including a six month addition to the facility through
the issuance of secured debentures in the principal amount of $550,000
and the amendment of certain covenants in the existing facilities.
The new debentures mature on September 30, 2009 and carry an interest
rate of 12.75% per annum, while the amendment to the covenants under the
existing facilities with Wellington will free up an additional $500,000
in working capital. The newly available funds will be used to fund the
company's general working capital needs, more specifically to fund its
physician liabilities.
"With the tremendous growth in acceptance of our PrevCare service,
Healthscreen has found the need for additional working capital financing
to support the growth of this seasonally government funded program, while
balancing the funding needs of other lines of business including
CallerMD, HealthAlert, EMR software and the new diabetes management
service," said Justin Belobaba, President and CEO of Healthscreen.
"Ensuring that the company has continuous access to growth capital may
not be easy in this market, however, we continue to be fortunate that the
strength of our business and management team continue to attract the
support necessary."
In consideration for the extension of the additional $550,000,
Healthscreen has issued Wellington 543,582 common shares in the capital
of the Company. In addition, in connection with the amendments made to
the existing facilities with Wellington, Healthscreen incurred a fee of
$125,000 to Wellington. Healthscreen has issued 781,250 Healthscreen
common shares to Wellington in satisfaction of that fee.
LaBarge Weinstein Professional Corporation and Stikeman Elliott LLP
provided legal advice for the parties involved in this transaction.
About Healthscreen Solutions
Healthscreen Solutions (www.healthscreen.com) provides a comprehensive
suite of practice enhancement products and services to increase physician
productivity and revenue while reducing costs and improving patient care.
The Company's portfolio includes billing and scheduling software,
electronic medical records software, CallerMD which assists physicians in
managing a range of uninsured medical services, PrevCareMD which helps
physicians earn supplemental income by achieving governmentset preventive
care targets, and HealthAlert which allows physicians to help their
patients in managing complex healthcare issues. Healthscreen's and its
partners' services and software are used by over 8,000 fulltime
physicians who are responsible for the health care of more seven million
Canadian patients. For more information, visit www.healthscreen.com.
About Wellington Financial LP
Wellington Financial LP is a privately held specialty finance firm
providing operating lines of credit, term, venture and amortizing loans
up to $40 million. Wellington Financial LP is currently deploying a $450
million investment program via its third fund. Wellington Financial LP is
managed by a partnership controlled by fund management and Clairvest
Group Inc. (TSX: CVG), who jointly have contributed a large financial
stake to Fund III. Limited partners include several of Canada's largest
institutional investors, crown corporations, financial institutions and
pension funds. Please visit the fund website at www.wellingtonfund.com,
or the Wellington Financial team blog at www.wellingtonfund.com/blog.
Disclaimer:
Statements in this release that are forward looking involve known and
unknown risks and uncertainties, which may cause the company's actual
results in future periods to be materially different from any future
performance that may be suggested in this release. The company assumes no
obligation to update any forwardlooking statements contained in this
release. Trading in the securities of Healthscreen should be considered
highly speculative. Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Contacts:
Healthscreen Solutions Inc.
Amir Nayeri
Director Corporate Development
1-866-534-DOCS ext. 7107
nayeri@healthscreen.com
Copyright 2009, Market Wire, All rights reserved.
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