VitalHub Corp. Announces Closing of $2.2M Private Placement
TORONTO, Sept. 15, 2020 (GLOBE NEWSWIRE) -- VITALHUB CORP. (TSXV: VHI) (the “Company” or “VitalHub”), is pleased to announce that it has closed a non-brokered private placement (the “Offering”) of 1,000,000 common shares (“Shares”) at a price per Share of $2.20 for total gross proceeds to the Company of $2,200,000.
Use of proceeds from the Offering will be for future acquisition purposes, to advance the Company’s M&A strategy. On completion of the Offering, VitalHub has 29,238,539 common shares issued and outstanding. The Shares are subject to a four month and one day restriction from trading as of the date of issuance.
Connection 25 Inc., a corporation wholly-owned and controlled by Francis Shen, a director of the Company, has subscribed for the full Offering of 1,000,000 Shares. Pursuant to Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”), the Offering constitutes a “related party transaction” as an insider of the Company subscribed for Shares. The Company is relying on exemptions from the formal valuation and minority approval requirements of MI 61-101 as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves interested parties, is expected to exceed 25% of the Company's market capitalization (as determined under MI 61-101). The Offering was approved by all of the independent directors of the Company.
Connection 25 Inc. now holds 3,341,150 Shares representing 11.43% of the total issued and outstanding common shares of the Company.
ABOUT VITALHUB
Software for Health and Human Services providers designed to simplify the user experience & optimize outcomes.
VitalHub provides technology to Health and Human Services providers including; Hospitals, Regional Health Authorities, Mental Health, Long Term Care, Home Health, Community and Social Services. VitalHub solutions span the categories of Electronic Health Record (EHR), Case Management, Care Coordination, Patient Flow & Operational Visibility, and DOCit Mobile Apps.
The Company has a robust two-pronged growth strategy, targeting organic growth opportunities within its product suite, and pursuing an aggressive M&A plan. Currently, VitalHub serves 275+ clients across Canada, USA, UK, Australia, Qatar, and Latvia. VitalHub is based in Toronto, Canada, with an offshore development hub in Sri Lanka. The Company is publicly traded on the TSX Venture Exchange under the symbol “VHI”.
CAUTIONARY STATEMENT
The TSX Venture Exchange has in no way passed upon the merits of the transactions and has neither approved nor disapproved the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.