By Sheri Kasprzak
New York, April 27 - Nightingale Informatix Corp. said it has completed a non-brokered private placement of subordinated debt for C$5 million and C$2 million from a line of credit facility.
The 10% debt matures in two years and is not convertible.
The investors, led by VRG Capital, a division of Vimy Ridge Group, will receive warrants for 1.25 million shares, exercisable at C$1.50 each for two years.
The credit line, provided by Greenfield Commercial Credit Inc., has a term of one year and bears interest at Prime rate plus 200 basis points.
The proceeds from both financings will be used to fund Nightingale's acquisition of Integrated Healthware Inc. and its affiliate Physician Strategies LLC.
The acquisition was completed on Thursday. The shareholders of Integrated and Physician received US$6 million, including US$3.1 million in cash and US$900,000 in stock.
Based in Markham, Ont., Nightingale develops software used by health care providers for patient scheduling, billing, transcription, data management, claims processing and other activities.
| Issuer: | Nightingale Informatix Corp.
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| Issue: | Subordinated debt
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| Amount: | C$5 million
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| Maturity: | Two years
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| Coupon: | 10%
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| Price: | Par
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| Yield: | 10%
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| Warrants: | For 1.25 million shares
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| Warrant expiration: | Two years
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| Warrant strike price: | C$1.50
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| Investor: | VRG Capital (lead)
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| Settlement date: | April 27
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| Stock symbol: | TSX Venture: NGH
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| Stock price: | C$1.40 at close April 27
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