MedcomSoft $2.3-million special warrant financing
MedcomSoft Inc MDCM
Shares issued 17,884,883 Dec 20 close $1.55
Tue 21 Dec 99 News Release
Mr. Sami Aita reports
MedcomSoft has completed the sale of a total of 2,875,000 special warrants
at a price of 80 cents per special warrant for gross proceeds of
$2.3-million.
The lead investor in this financing was 2FundEcom Inc., which acquired 1.25
million special warrants for gross proceeds of $1-million. 2FundEcom Inc.
is a Canadian venture capital company formed to provide capital and
management expertise to early stage technology, Internet and electronic
commerce companies. 2FundEcom's founding directors are Aubrey Baillie,
Robert McLeish and Peter Wallace. Dominick and Dominick Securities Inc.
sold 625,000 special warrants as agent of MedcomSoft for gross proceeds of
$500,000. A director of MedcomSoft also acquired 800,000 special warrants
for gross proceeds of $640,000.
In conjunction the sale of special warrants, the agents used by MedcomSoft
received broker's special warrants exercisable into compensation options to
acquire a total of 82,500 common shares at 80 cents per share and total
cash commissions of approximately $36,000.
The sale of the special warrants took place over four closings, the last of
which took place on Dec. 21, 1999. The 2,875,000 special warrants issued in
these financings are exercisable, for no additional consideration, as
follows:
1,850,000 special warrants each exercisable into one common share and 0.12
of one non-transferable purchase warrant;
200,000 special warrants each exercisable into one common share and 0.10 of
one non-transferable purchase warrant; and
825,000 special warrants each exercisable into one common share. Each whole
purchase warrant is exercisable into one common share upon the payment of
either 80 cents or $1.03 per share.
In connection with this financing, MedcomSoft has undertaken to file a
prospectus within 120 days of the closing dates to qualify the common
shares and the purchase warrants to be issued on the exercise of the
special warrants, the purchase warrants and the compensation options, as
applicable. In the event that a receipt for a final prospectus is not
received within this time frame, the 2,875,000 special warrants sold will
be exercisable into a maximum of 3,162,500 common shares and 242,000
purchase warrants for no additional consideration.
The proceeds of these financings will be used to finance working capital
needs and to continue expansion into the U.S. market. "These financings
will assist MedcomSoft in our penetration initiative in the U.S.," said
Sami Aita, MedcomSoft's chief executive officer. "I am pleased to be
working with organizations of the calibre of 2FundEcom and Dominick and
Dominick Securities. By combining our expertise and resources we have taken
one further step in our efforts to maximize shareholder value."
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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