Four-year arrangement with AGS to finance business expansion
By Devika Patel
Knoxville, Tenn., May 4 - Medical Care Technologies Inc. finalized details for a $10 million four-year reserve equity financing agreement with AGS Capital Group, LLC, according to an 8-K filed Friday with the Securities and Exchange Commission. The offering was announced on April 30 and priced May 2.
AGS Capital has committed to buy company stock in increments of up to 250% of the average daily trading volume. The purchase price is set at 90% of the lowest closing bid price of the stock during the 20 consecutive trading days following an advance notice.
The investor will also be paid a fee of 33,333,333 restricted common shares.
"We believe this funding will provide us with the flexibility needed to expand our business," chief operating officer Luis Kuo said in a press release when the deal was announced.
"As the demand in China to implement our business model and to expand our children's health centers to other locations has been overwhelming, securing the right financing will give us the ability to manage both the long-term growth of the company and shareholder value."
The children's health care service provider is based in Beijing.
| Issuer: | Medical Care Technologies Inc.
|
| Issue: | Reserve equity financing agreement
|
| Amount: | $10 million
|
| Tenor: | Four years
|
| Price: | 10% discount
|
| Warrants: | No
|
| Investor: | AGS Capital Group, LLC
|
| Announcement date: | April 30
|
| Pricing date: | May 2
|
| Stock symbol: | OTCBB: MDCE
|
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