CodeSmart™ Group Receives Firm Commitment for $1.5 million Equity Financing
NEW YORK, Nov. 19, 2013 /PRNewswire/ -- CodeSmart Holdings, Inc. (OTCQB: ITEN), with its subsidiary, The CODESMART™ Group, Inc. (collectively, "CODESMART"), a premier ICD-10 education and solutions group that offers CODESMART™ UNIVERSITY, its on-line education solution and customizable training solutions, announced today that it has received a firm commitment for $1.5 million in common stock equity financing from AGA III Capital LLC at a price of $1.25 per share. The financing is subject to normal and customary due diligence and will close in separate tranches with first tranche expected to close by November 25, 2013. The Company believes that this financing can enable the Company to become cash flow positive by the end of the first quarter of 2014.
"We are pleased to reach a financing agreement with AGA. This capital commitment allows for execution of management's plan to capture the ICD-10 transition opportunity over the next several years," Says Ira Shapiro, CodeSmart Chairman and CEO. "Over the past several months we have seen a major shift from discussion to action by the payer and provider communities. We believe this shift will grow significantly over the next several months, as companies prepare for the Oct 1, 2014 transition date."
According to Rusty Allen, Manager of AGA, "CodeSmart is positioned well to help its clients through this transition. There are few companies with such a unique business to help their clients in the ICD-10 space. This capital reaffirms our commitment to management and the company."
CodeSmart Holdings, Inc. (OTCQB: ITEN) with its subsidiary, The CODESMART™ Group, Inc., is a premier national subject matter expert for ICD-10 education and compliance in the United States. Its product, CODESMART™ UNIVERSITY, is an on-line program of study for existing coders, new coders, clinicians, and healthcare roles of all types. Created by a combination of a leading panel of ICD-10 subject matter experts and a major four-year accredited university, which contributed the nation's top course designers and a platform that already provides interactive education to more than 60,000 students per year in degree programs. The ICD-10 training also includes live professors who work with and guide students through the programs of study in ICD-10.
CODESMART™ UNIVERSITY is endorsed by over 60 colleges and universities nationwide for its quality of education. The CODESMART™ Group, Inc. also provides solutions for ICD-10 transition, outsource coding, coding audits, critical documentation improvement and the revenue cycle continuum.
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SOURCE CodeSmart Holdings, Inc.