Company sells 313,649 shares at $3.22 each, converts notes in mergers
By Toni Weeks
San Diego, April 27 - Health Revenue Assurance Holdings, Inc. completed a $1.01 million private placement of common stock, according to an amended 8-K filing with the Securities and Exchange Commission.
The company sold a total of 313,649 shares at $3.22 each. It initially sold 206,183 shares at that price to raise $663,909 after the company entered into a merger agreement on Feb. 10 with Health Revenue Acquisition Corp. and Health Revenue Assurance Associates, Inc. In the merger, Health Revenue Acquisition was merged with and into Health Revenue Assurance Associates, which then became a wholly owned subsidiary of Health Revenue Assurance Holdings. On the same date, Health Revenue Assurance Associates acquired Anvex International, Inc. in a reverse merger.
After the initial tranche, the company said it would sell additional shares until the maximum offering amount, $1.5 million, was reached, the company terminated the offer or until 45 days following the closing of the minimum offering amount, which was $470,000.
The company closed the share offering by selling an additional 107,466 shares at the same price for $346,040.
As part of the offering, holders of $313,907 of Health Revenue Assurance Associates convertible notes automatically exchanged their convertibles into 97,487 shares of the company's common stock at a conversion price of $3.22 per share. In addition, holders of some senior secured bridge loan promissory notes automatically converted their notes into 103,523 shares at a conversion price of $2.415 per note.
Proceeds will be used to complete the reverse merger, obtain new financing and complete a recapitalization.
The Plantation, Fla.-based company, formerly Anvex International, is a health information management services company specializing in optimizing revenue integrity programs for hospitals and their physicians by providing contract coding, coding services, defense auditing, education and revenue consulting services.
| Issuer: | Health Revenue Assurance Holdings, Inc.
|
| Issue: | Common stock
|
| Amount: | $1,009,950
|
| Shares: | 313,649
|
| Price: | $3.22
|
| Warrants: | No
|
| Settlement dates: | Feb. 10 (for $663,909); Feb. 12 for $346,041
|
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