DENVILLE, N.J., Jan. 3, 2014 /PRNewswire/ -- Healthcare Corporation of America (OTCBB: HCCAE), (the "Company") today announced the closing of $2,612,500 in new financing.
The Company issued two-year junior secured notes in the aggregate principal amount of $2,112,500, bearing interest at 10.0% per annum and warrants to purchase 1,408,333 shares of the Company's common stock at an exercise price of $3.00 per share. The junior notes are convertible at a price of $1.50 per share. In addition, the Company entered into a Forbearance, Waiver and Modification Agreement with Partners For Growth III, L.P. ("PFG"), pursuant to which certain terms of the loan were modified and PFG loaned an additional $500,000 to the Company.
The Company will file a Form 8-K with the Securities and Exchange Commission that includes a detailed description of both the transaction with PFG and the new convertible notes. Access to the Current Report on Form 8-K can also be found on the SEC section of the Company's website at www.HCCARX.com.
The Company also provided an update to its November 11, 2013, press release regarding its planned SEC filings and related matters.
The Company now expects to file its Transition Report on Form 10-K form for June 30, 2013, with the SEC on or about January 31, 2014, and file its Quarterly Report on Form 10-Q for the quarter ended September 30, 201,3 on or prior to February 15, 2014. All other plans as described in the abovementioned press release remain unchanged at this time.
Chardan Capital Markets acted as the sole placement agent for the new financing transactions.
The Company also announced today in a separate release the appointment of Natasha Giordano as its Chief Executive Officer, replacing Gary Sekulski.
About Healthcare Corporation of America
Based in Denville, N.J., Healthcare Corporation of America's (HCCA) (www.hccarx.com) mission is to reduce prescription drug costs for clients while improving the quality of care for its members. Through its pharmacy benefit management (PBM) subsidiary, Prescription Corporation of America (PCA) (www.hca-pca.com), HCCA administers prescription drug benefit programs for employers ranging from commercial clients of various sizes and industries to business associations and trade groups, as well as local government entities, labor unions, charitable and non-profit organizations, and third-party administrators of self-insured benefit plans. In addition, through its 340Basics subsidiary (www.340Basics.com), HCCA provides software and services to help Covered Entities manage all processes related to the Federal 340B Drug Discount Program including registration, compliance, audit, claims processing, and access to pharmacies. Another newly formed subsidiary, Morris Consulting Services (MCS) (www.morrisconsultingservices.com) will work with organizations using up-to-date data and analytics to assess where costs can be reduced in prescription-drug plans, making coverage more affordable for plan sponsors and members.
Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the company does not assume a duty to update these forward-looking statements.
Contact: Yoram Bibring, Chief Financial Officer
SOURCE Healthcare Corporation of America