Agreement with AvidBank Corporate Finance includes five-year warrants
By Devika Patel
Knoxville, Tenn., May 9 - Auxilio, Inc. settled a $2 million one-year revolving line of credit with AvidBank Corporate Finance on May 4, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The loan has an effective date of April 19.
The revolver will bear interest at Prime plus 375 basis points, but interest may not be less than 7%.
The bank also received warrants for 72,098 shares, which are each initially exercisable at $1.387 for five years. The strike price reflects a 26.09% premium to the May 3 closing share price of $1.10.
Located in Mission Viejo, Calif., Auxilio provides document image management services for healthcare facilities.
| Issuer: | Auxilio, Inc.
|
| Issue: | Revolving line of credit
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| Amount: | $2 million
|
| Maturity: | One year
|
| Coupon: | Prime plus 375, floor of 7%
|
| Warrants: | For 72,098 shares
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| Warrant expiration: | Five years
|
| Warrant strike price: | $1.387
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| Investor: | AvidBank Corporate Finance
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| Settlement date: | May 4
|
| Stock symbol: | OTCBB: AUXO
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| Stock price: | $1.10 at close May 3
|
| Market capitalization: | $22.37 million
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