Company Plans to Complete $1 Million in Financing in Q1 2014
TORONTO, ONTARIO – CardioComm Solutions, Inc. (TSX VENTURE:EKG) (“CardioComm Solutions” or the “Company”) announced today it had closed the first tranche of its previously announced private placement equity financing. Under the financing, the Company issued $1,622,222 units at a price of $0.0675 per unit, for gross proceeds of $109,500. Each unit was comprised of one common share of the Company and one common share purchase warrant exercisable for two years for an additional share at a price of $0.10. For further information regarding the financing, please see the Company’s press release that was issued on January 9, 2014. The gross proceeds from the financing will be used for general working capital of the Company. The shares and warrants issued by the Company are subject to a four month hold period which expires on May 21, 2014. The Company also confirmed that it will continue its current private placement equity financing offer.
In a CEO update released January 16, 2014, the Company stated that the potential exists that the share price offering of a 25 percent discount to a nine cent market price may need to be re-priced with no advanced notice. CardioComm Solutions has a track record of publishing press releases on a regular basis and at times on a weekly basis. Following a Company press release, should the open market price of the Company’s stock reach or exceed 9.5 cents, the Company would need to re-price the private placement offering accordingly.
“We are optimistic on the performance of CardioComm Solutions and our go to market plans for the consumer HeartCheck™ and professional healthcare based GEMS™ technologies, products and ECG services in 2014. As we cannot determine what the market may do with respect to stock price during the period of time of our private placement equity financing offer, we have elected to close this first tranche of financing to secure the share price for those accredited investors who have committed early to the private placement opportunity for shares provided at a discount to the market,” said Etienne Grima, CEO of CardioComm Solutions. “We wish to advise our shareholders that any share price offering may not be possible to maintain for an extended period of time should we release news on the Company’s business activities.”
