Cloud DX (TSX-V:CDX, OTCQB:CDXFF) Inc said it has closed its previously announced non-brokered private placement, issuing 1,970 secured convertible debentures at a price of $1,000 each for gross proceeds of $1,970,000, an increase of $220,000 from that previously announced.
The total is inclusive of $895,014.92 in gross proceeds received from the lenders under the company's secured loan announced on April 26, 2022, representing the total amount of principal and accrued interest previously outstanding under the loan.
Cloud DX said it intends to use the net proceeds from the private placement for inventory and general working capital purposes, and the repayment of the outstanding principal and accrued interest of the secured loan.
The debentures issued will mature 12 months from the date of closing of the private placement and shall bear interest at a simple rate of 18% per annum, payable upon the earlier of the conversion date or the maturity date.
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The principal amount of the debentures is convertible, at the election of the holders, into common shares in the capital of the company at a conversion price of C$0.15 each at any time prior to the maturity date.
The debentures are secured against the assets of the company under a general security agreement.
Insiders of the company subscribed for $1,005,000 principal amount of debentures under the private placement.
In connection with the private placement, Cloud DX paid finder's fees in the amount of 138,333 non-transferable common share purchase warrants and a cash fee of $20,750. Each broker warrant entitles the holder to acquire one common share at a purchase price of $0.15 for a period of two years from the date of issuance.
In accordance with applicable Canadian securities laws, all securities issued under the private placement will be subject to a four-month hold period. The private placement remains subject to final approval from the TSX Venture Exchange.
Accelerating virtual healthcare's future, Cloud DX is making healthcare better for everyone. The company's Connected Health remote patient monitoring platform is used by healthcare enterprises and care teams across North America to virtually manage chronic disease, enable ageing in place, and deliver hospital-quality post-surgical care at home.
Providers partnering with Cloud DX achieve better healthcare and patient outcomes, reduce the need for hospitalization/rehospitalization, and reduce healthcare delivery costs through more efficient use of resources.
Cloud DX is the co-winner of the Qualcomm Tricorder XPRIZE, a 2021 Edison Award winner, a Fast Company 'World Changing Idea' finalist, and one of 'Canada's Ten Most Prominent Telehealth Providers'.
Contact the author at jon.hopkins@proactiveinvestors.com