Series A convertible preferred stock sold with 2.7 million warrants
By Devika Patel
Knoxville, Tenn., Nov. 18 - Health Revenue Assurance Holdings, Inc. arranged a $5.4 million private placement of 8% series A convertible preferred stock on Nov. 12, according to an 8-K filed Monday with the Securities and Exchange Commission.
The company will sell 13.5 million preferreds at $0.40 apiece. The preferreds are convertible into 27 million common shares at $0.20 per share.
Investors also will receive warrants for 27 million common shares, with each warrant exercisable at $0.30.
The strike price is a 15.39% premium to the Nov. 11 closing share price of $0.26. The conversion price of the preferreds is a 23.08% discount to that price.
The Plantation, Fla., company interprets data for hospitals, providers and other health care organizations by pulling medical data together to create a predictive window.
| Issuer: | Health Revenue Assurance Holdings, Inc.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $5.4 million
|
| Preferreds: | 13.5 million
|
| Price: | $0.40
|
| Dividends: | 8%
|
| Conversion price: | $0.20
|
| Warrants: | For 27 million shares
|
| Warrant strike price: | $0.30
|
| Pricing date: | Nov. 12
|
| Stock symbol: | OTCBB: HRAA
|
| Stock price: | $0.26 at close Nov. 11
|
| Market capitalization: | $15.23 million
|
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