Three-year 10% secured convertible debentures will be sold in tranches
By Devika Patel
Knoxville, Tenn., June 3 - Healthcare Corp. of America said it has arranged a $2.95 million private placement of 10% secured convertible debentures. Chardan Capital Markets is the agent for the deal, which has already raised $2.2 million.
The debentures mature in three years and are convertible into common stock at $0.05 per share, which is an 84.38% discount to the June 2 closing share price of $0.32.
Investors will also receive warrants for about 64.3 million shares. Each warrant is exercisable at $0.10, a 68.75% discount to the June 2 closing price.
Settlement of the second $750,000 tranche is expected June 15.
The pharmacy-benefit manager is based in Denville, N.J.
| Issuer: | Healthcare Corp. of America
|
| Issue: | Secured convertible debentures
|
| Amount: | $2.95 million
|
| Maturity: | Three years
|
| Coupon: | 10%
|
| Conversion price: | $0.05
|
| Warrants: | For about 64.3 million shares
|
| Warrant strike price: | $0.10
|
| Agent: | Chardan Capital Markets
|
| Pricing date: | June 3
|
| Settlement dates: | June 3 (for $2.2 million), June 15 (for $750,000)
|
| Stock symbol: | OTCBB: HCCA
|
| Stock price: | $0.32 at close June 2
|
| Market capitalization: | $2.85 million
|
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