New Issue: MDwerks secures $7.5 million from private placement of convertible preferreds, warrant

By Devika Patel

Knoxville, Tenn., April 2 - MDwerks, Inc. said it has raised $7.5 million in a private placement of convertible preferred shares and a warrant.

The company sold 750 series B convertible preferred shares at $10,000 per share to Vicis Capital. The preferred stock is convertible into 13,333,334 common shares. Each share is redeemable at par, at the holder's option, on March 31, 2010.

Investors also received a 10-year series H warrant to buy 53,333,334 common shares, which is exercisable at $0.75.

Proceeds will be used for working capital and debt retirement.

Based in Deerfield Beach, Fla., MDwerks provides software to manage insurance claims to the health care industry.

Issuer:	MDwerks, Inc.
Issue:	Series B convertible preferred stock, convertible into 13,333,334 common shares, warrant
Amount:	$7.5 million
Shares:	750
Price:	$10,000
Warrants:	For 53,333,334 shares
Warrant expiration:	10 years
Warrant strike price:	$0.75
Settlement date:	April 2
Stock symbol:	OTCBB: MDWK
Stock price:	$0.85 at close April 1

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