Medix Resources Closes On Financing Providing $2.5MM From A Private Investor
NEW YORK--(BUSINESS WIRE)--Jan. 12, 2001--Medix Resources (AMEX:MXR), the e-health connectivity technology Company, today announced the closing of a private placement of a line of credit for convertible debt with a single undisclosed investor, which will permit Medix to draw down up to $2,500,000 over the next ten months if conditions for the draw-downs are satisfied.
Medix drew down $750,000 of the line at the closing.
Interest on the funds advanced will be 10% per annum, and the debt will mature on January 10, 2002. Under certain circumstances, at the Company's option, the debt may be paid in shares of the Company's common stock pursuant to a formula based on the then market price of such stock. The debt is convertible at $0.90 per share for the first $750,000 drawdown and $1.00 for the remainder.
Future draw-downs are conditioned upon the bid price of the Company's common stock exceeding $1.00 per share, and the effectiveness of a registration statement to permit the investor to sell common stock into which the debt may be converted and which may be issued upon the exercise of warrants issued to the investor in connection with the line of credit. The investor will be issued warrants to purchase up to 1,250,000 shares of Medix common stock, as draw-downs occur. The exercise price for such warrants is $1.75, subject to adjustment in certain circumstances. The funds will be used to support ongoing working capital needs pending a more substantial private equity placement in the near future.
Medix Chief Executive Officer, John R. Prufeta commented, "It is extremely gratifying to see continued interest in our Company among investors, despite a difficult capital market for all technology sectors--with e-health no exception. We enter the new year with excitement and enthusiasm as we move into the deployment stage of our connectivity technology in joint effort with major strategic partners in the healthcare industry."
About Medix Resources, Inc.
Medix Resources, Inc. through its wholly owned subsidiary Cymedix Lynx Corporation is the developer and provider of the Cymedix.com(R) suite of fully-secure, patented Internet based software products, that will allow instantaneous communication of high value added healthcare information among doctor offices, hospitals, health management organizations and insurance companies. Additional information about Medix Resources and its products and services can be found by visiting its Web sites, www.medixresources.com and www.cymedix.com, or by calling (800) 326-8773.
Information in this press release contains forward-looking statements that involve risks and uncertainties that might adversely affect the Company's operating results in the future to a material degree. Such risks and uncertainties include, without limitation, the ability of the Company to raise capital to finance the development of its software products, the effectiveness and the marketability of those products, the ability of the Company to protect its proprietary information, and the establishment of an efficient corporate operating structure as the Company grows. These and other risks and uncertainties are presented in detail in the Company's Form 10-KSB for 1999,and its Form 10-QSB for the third quarter of 2000, which were filed with the Securities and Exchange Commission on March 30, 2000, and November 14, 2000, respectively. This information is available from the SEC or the Company.
This press release and prior releases are available on the KCSA
Public Relations Worldwide Web site at www.kcsa.com
CONTACT: Medix Resources, Inc.
John R. Prufeta, President and CEO
212/697-2509
212/681-9817 (fax)
jprufeta@cymedix.com |
