Deal sells 10% junior secured notes due Dec. 31, 2015 with warrants
By Devika Patel
Knoxville, Tenn., Jan. 3 - Healthcare Corp. of America settled a $2.11 million tranche of a $6 million private placement of 10% junior secured convertible term notes on Dec. 31, according to an 8-K filed Friday with the Securities and Exchange Commission.
The notes mature on Dec. 31, 2015 and are initially convertible into common stock at $1.50 per share. The conversion price is a 78.07% discount to the Jan. 2 closing share price of $6.84. The notes are redeemable.
The investors also received warrants for one common share per every $1.50 of notes purchased, which are each exercisable at $3.00 until Dec. 31, 2018. The strike price is a 56.14% discount to the Dec. 30 closing share price.
Chardan Capital Markets, LLC was the agent.
Proceeds will be used for general working capital purposes.
The pharmacy benefit manager is based in Denville, N.J.
| Issuer: | Healthcare Corp. of America
|
| Issue: | Junior secured convertible term notes
|
| Amount: | $6 million
|
| Maturity: | Dec. 31, 2015
|
| Coupon: | 10%
|
| Conversion price: | $1.50
|
| Call: | Yes
|
| Warrants: | Warrants for one common share per $1.50 of notes purchased
|
| Warrant expiration: | Dec. 31, 2018
|
| Warrant strike price: | $3.00
|
| Agent: | Chardan Capital Markets, LLC
|
| Announcement date: | Jan. 3
|
| Settlement date: | Dec. 31 (for $2,112,500)
|
| Stock symbol: | OTCBB: SWCLE
|
| Stock price: | $6.84 at close Jan. 2
|
| Market capitalization: | $72.11 million
|
© 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.
