La Cortez raises $5.98 million selling units; Health Systems takes in $5 million from preferreds

By Devika Patel

Knoxville, Tenn., Sept. 16 - Equity private placements seemed unaffected by Monday's market fluctuations as La Cortez Energy, Inc. managed to raise $5.98 million in a private placement of units and Health Systems Solutions, Inc. completed a $5 million private placement of convertible preferred stock.

Both companies were pleased with the results of their financings, but Health Systems saw its shares (OTCBB: HSSO) plummet 28.57%, or $1.00, to close at $2.50 on Tuesday.

La Cortez gets $5.98 million

La Cortez, a San Diego-based oil and gas exploration and production company, announced it concluded a $5.98 million private placement of units via agent Gottbetter Capital Markets, LLC.

President and chief executive officer Andres Gutierrez expressed satisfaction with the results.

"I am very pleased with the result obtained in this private placement," Gutierrez said in a press release. "It reflects a vote of confidence in the La Cortez executive team and the ability of the board of directors to successfully execute the company's strategic plan."

Gutierrez said La Cortez has already identified and is evaluating a number of business opportunities in Colombia, Peru and Brazil that are complementary to the first phase of the company's strategic plan, which is to complete one or more transactions that will quickly position La Cortez with reserves, proven production and a portfolio of development and exploration opportunities.

In the private placement, the company sold 4,784,800 units of one common share and one half-share warrant at $1.25 per unit. The whole warrants are exercisable at $2.25 for five years.

Proceeds will be used for the company's initial investment in one or more oil and gas exploration and production opportunities in Colombia, Peru and/or Brazil and for general working capital.

Company shares (OTCBB: LCTZ) remained unchanged at $2.70 Tuesday.

Health Systems sees $5 million

Health Systems raised $5 million by selling its series E convertible preferred stock on Sept. 11.

The company sold 833,334 preferreds to Stanford International Bank Ltd. Each preferred is convertible into common stock at $6.00 per share.

Stanford also received warrants for 833,334 common shares.

"Stanford's desire to fund HSS' growth through an equity investment - as opposed to debt - affirms their belief in the upside potential of our vision and our team," Health Systems chief executive officer and board chairman Stan Vashovsky said in a press release. "From Health Systems Solutions' perspective, we will have additional long-term capital to invest in developing new products and services. "With the added flexibility afforded by the structure of this transaction, we expect to continue building on the success of the past year."

Based in Tampa, Fla., Health Systems Solutions develops software used for clinical, financial and administrative purposes in the health care sector.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.