VitalHub Corp. Announces Early Redemption Of $2,219,000 Outstanding Debentures & New Debt Financing
September 25 2019 - 7:30AM
VITALHUB CORP. (TSXV: VHI) (the “
Company” or
“
VitalHub”) is pleased to announce that it has
redeemed in full the $2,219,000 aggregate principal amount of
outstanding unsecured debentures of the Company (the “Debentures”)
issued December 7, 2017. The Debentures bore interest from the date
of issue at 12.0% per annum, and were payable semi-annually in
arrears. The Debentures were set to mature on December 7, 2020,
three years after the date of issue (the “Maturity Date”). The
Company paid a total of $2,396,520, representing the sum of the
outstanding principal amount of Debentures, plus accrued and unpaid
interest to-date, plus a 5% redemption premium (in accordance with
the terms of the Debentures). The early repayment of the Debentures
represents a cost saving of $204,148, versus repaying the
Debentures on maturity).
The Company is also pleased to announce it has
signed a revised credit agreement with the Company’s current
institutional lender and banking provider, for a non-revolving
credit facility (the “Credit Facility”) of up to $1,400,000. The
Credit Facility is for a term of 60 months, with interest on the
balance outstanding of the institutional prime rate plus 2.0%, and
is repayable at any time by the Company.
“We are happy that the Company has graduated to
the availability of credit from traditional banking sources, which
in turn should benefit the Company going forward with more
favourable credit arrangements,” said Dan Matlow, CEO of VitalHub
Corp.
ABOUT VITALHUB:
VitalHub develops mission-critical technology
solutions for Health and Human Services providers in
the Mental Health (Child through Adult), Long Term
Care, Community Health Service, Home Health, Social Service
and Acute Care sectors. VitalHub technologies
include Blockchain, Mobile, Patient Flow, Web-Based Assessment
and Electronic Health Record solutions.
The Company has a robust two-pronged growth strategy, targeting
organic growth opportunities within its product suite, and pursuing
an aggressive M&A plan. Currently, VitalHub serves 200+ clients
across North America. VitalHub is based in Toronto, Canada, with an
offshore development hub in Sri Lanka. The Company is publicly
traded on the TSX Venture Exchange under the symbol "VHI".
CAUTIONARY STATEMENT
This press release includes forward-looking statements regarding
the Corporation and its business, which may include, but is not
limited to, statements with respect to the appointment of a new
directors. Often, but not always, forward-looking statements can be
identified by the use of words such as "plans", "is expected",
"expects", "scheduled", "intends", "contemplates", "anticipates",
"believes", "proposes" or variations (including negative
variations) of such words and phrases, or state that certain
actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved. Such statements are based on
the current expectations of the management of each entity, and are
based on assumptions and subject to risks and uncertainties.
Although the management of each entity believes that the
assumptions underlying these statements are reasonable, they may
prove to be incorrect. The forward-looking events and circumstances
discussed in this release, including the share consolidation
proposal, may not occur by certain specified dates or at all and
could differ materially as a result of known and unknown risk
factors and uncertainties affecting the companies, including risks
regarding the technology industry, failure to obtain regulatory or
shareholder approvals, market conditions, economic factors, the
equity markets generally and risks associated with growth and
competition. Although the Corporation has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results to differ from those anticipated,
estimated or intended. No forward-looking statement can be
guaranteed. Except as required by applicable securities laws,
forward-looking statements speak only as of the date on which they
are made and the Corporation undertakes no obligation to publicly
update or revise any forward-looking statement, whether as a result
of new information, future events, or otherwise.
CONTACT INFORMATION
Dan MatlowChief Executive Officer, Director(416)
727-9061dan.matlow@vitalhub.com
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