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Centric Health Announces Closing of Private Placement of Convertible Preferred Shares
Centric Health Announces Closing of Private Placement of Convertible Preferred Shares ...
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[{"type":"text","content":"\n\n\n\nCentric Health Announces Closing of Private Placement of Convertible Preferred Shares\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, March 13, 2019\n\n\n\nTORONTO, March 13, 2019 /CNW/ - Centric Health Corporation (\"Centric Health\" or \"the Company\") (TSX: CHH), one of Canada's leading healthcare services companies, announced today that it has completed a non-brokered private placement (the \"Private Placement\") to funds and accounts managed by Ewing Morris & Co. Investment Partners Ltd.\" (\"Ewing Morris\") for gross proceeds of $12 million through the issuance by the Company of 30,000,000 convertible preferred shares of the Company at an issue price of $0.40 per share (the \"Preferred Shares\"). \nEach Preferred Share is entitled to receive a cumulative annual dividend equal to $0.036 per share (9% per annum), payable in arrears semi-annually in cash. The Preferred Shares are convertible into common shares of the Company at the holder's option on a one-for-one basis, and at the Company's option in certain circumstances, subject to customary anti-dilution adjustments. The Preferred Shares will mature on March 13, 2024 at which time each outstanding Preferred Share will be redeemed by the Company for $0.40 plus any unpaid dividends.  \nThe proceeds of the Private Placement will be used by the Company to repay senior indebtedness. Ewing Morris will receive the right to nominate one director to the Company's Board of Directors for so long as it holds the Preferred Shares. \nFollowing closing of the Private Placement, Ewing Morris would hold an approximate 12.2% ownership interest in the Company on an as-converted, partially diluted basis. \n\"We are excited to welcome Ewing Morris as a new significant investor in Centric Health,\" said David Murphy, Centric Health's President and Chief Executive Officer. \"Ewing Morris understands Centric Health's unique position in the Canadian healthcare landscape, and its investment demonstrates its belief in our ability to execute on the previously announced vision to become the le...