Rehab company raises $425K in stock sale
A public rehabilitation company has sold 1.7 million shares to raise gross proceeds of $425,000.
Agility Health in Grand Rapids, a rehab services and software provider, said last week that it has closed a $425,000 stage of a private placement offering of "voting common shares" at $0.25 per share to a relatively small group of select investors.
The company will allocate the net proceeds for “general corporate and working capital purposes.”
Agility Health (TSXV: AHI) plans to close additional stages of the private placement to reach total gross proceeds of $1.5 million in the coming weeks.
The multiple stages are due to the holiday season for investor convenience, according to Steve Davidson, CEO, Agility Health.
During the first stage, 600,000 of the shares were purchased by "related parties of the company."
Agility Health said the private placement was exempt from the formal valuation and minority shareholder approval requirements, since neither fair market value of the common shares issued to the related parties, nor consideration being paid by related parties exceeded 25 percent of the company’s market capitalization.
The transactions are subject to regulatory approval, which includes approval by the TSX Venture Exchange, and the securities issued are subject to a statutory hold period until April 20, 2015.
Agility Health operates a network of 74 outpatient or on-site rehabilitation locations across 17 states.
The company reported revenue of $63 million for the fiscal year 2013.
It recently launched AgileRPM, its practice management software. The company invested more than $3 million to develop the product.