Medivolve Inc. (NEO:MEDV.AQN, OTC:COPRF) said it has closed its previously announced secured convertible note financing for aggregate gross proceeds to the company of $1.2 million, which included a $200,000 original issue discount.
The company said it plans to use the net proceeds from the offering to repay existing debt and for general corporate purposes.
Cumulative interest on the outstanding principal amount is payable by the company at the annual rate of 8.0% per annum. The note will mature on December 31, 2023, and will be convertible, at the option of the holder after four months and one-day following issuance and subject to certain conditions, into units at a price of C$0.40 per unit.
All amounts outstanding under the note are secured by a first-ranking security interest over all of the company's present and after-acquired personal property.
Each unit consists of one common share of the company and one common share purchase warrant. Each warrant entitles the holder to purchase one common share at an exercise price of $0.50 for a period of five years from the date of issuance.
No finder fees or commissions were paid as part of the offering.
The securities issued under the offering are subject to a statutory hold period of four months and one day following the issuance, expiring May 12, 2023.
Medivolve is a healthcare technology company that seeks to reinvent the US healthcare system by leveraging a bespoke telehealth platform, a clinical diagnostic network, and a data-driven AI framework to improve patient care.
Contact the author at jon.hopkins@proactiveinvestors.com