ZoomMed completes C$2.5 million units placement with C$508,000 tranche

Proceeds slated for acquisition of Praxis Sante, company's cash flow

By Devika Patel

Knoxville, Tenn., March 25 - ZoomMed Inc. said it settled the second and final tranche of a private placement of units for C$508,000. The deal, which was conducted through agent Avenue Capital Markets Inc., priced for C$2.5 million on Feb. 3, and the company raised C$1.99 million on Feb. 10, raising the full C$2.5 million.

ZoomMed sold 16,132,902 units of one common share and one half-share warrant at C$0.155 per unit. In the first tranche, the company sold 12,855,483 units; it sold 3,277,419 units in the second tranche.

Each whole two-year warrant is exercisable at C$0.17, which is identical to the Feb. 2 closing share price.

Proceeds will be used for the acquisition of Praxis Sante Inc. and the company's cash flow.

Brossard, Quebec-based ZoomMed sells prescription management products and laboratory equipment.

Issuer:	ZoomMed Inc.
Issue:	Units of one common share and one half-share warrant
Amount:	C$2,500,600
Units:	16,132,902 (12,855,483 in first tranche and 3,277,419 in second tranche)
Price:	C$0.155
Warrants:	One half-share warrant per unit
Warrant expiration:	Two years
Warrant strike price:	C$0.17
Agent:	Avenue Capital Markets Inc.
Pricing date:	Feb. 3
Settlement dates:	Feb. 10 (for C$1,992,600), March 25 (for C$508,000)
Stock symbol:	TSX Venture: ZMD
Stock price:	C$0.17 at close Feb. 3
Market capitalization:	C$18.84 million

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