Business
Kovo HealthTech Announces Letter of Intent for Strategic USD$10,300,000 Financing
Vancouver, British Columbia--(Newsfile Corp. - March 22, 2023) - Kovo HealthTech Corporation (TSX...
About this update from Kovo+ Holdings Inc
[{"type":"text","content":"Kovo HealthTech Announces Letter of Intent for Strategic USD$10,300,000 FinancingVancouver, British Columbia--(Newsfile Corp. - March 22, 2023) - Kovo HealthTech Corporation (TSXV: KOVO) (the \"Company\" or \"Kovo\") — a leader in healthcare Billing-as-a-Service — announced today it has entered into a non-binding letter of intent (the \"Letter of Intent\") pursuant to which Avonlea Ventures #2 Inc. (\"AV\") has committed to make a strategic investment into Kovo comprising of a non-brokered private placement of USD$3,300,000 (the \"Equity Financing\") and an up to USD$7,000,000 secured credit facility (the \"Debt Financing\" and together with the Equity Financing, the \"Financing\").\"This funding allows Kovo to further develop our SaaS-based medical billing technology platforms and retire debt, while driving significant growth through our pipeline of strategic acquisitions,\" explains Kovo CEO Greg Noble. Equity FinancingIt is intended that AV and Kovo will complete the Equity Financing through the purchase by AV of an aggregate of 17,600,000 units (\"Units\") at a purchase price per Unit of CDN$0.25 (the \"Issue Price\") for gross proceeds of CDN$4,400,000. Each Unit shall consist of one common share (the \"Common Shares\") of the Company, and one-half of one transferable common share purchase warrant (each whole common share purchase warrant, a \"Warrant\") exercisable to acquire an additional Common Share at CDN$0.40 for a period of twenty-four months. Approximately 85% of the proceeds of the Equity Financing will be applied to retire other indebtedness of the Company, with the remainder applied to working capital. The Equity Financing will be made pursuant to the terms of a definitive investment agreement (the \"Investment Agreement\") to be finalized and executed by the parties and containing customary terms and conditions, including representations and warranties regarding the business of Kovo, as well as conditions and covenants of the parties suitable for a transaction of this nature and scope, including all necessary TSX Venture Exchange (the \"TSXV\"), shareholder and other regulatory approvals.The Letter of Intent contemplates that, for so long as AV owns, directly or indirectly, 10% or more of the issued and outstanding Common Shares on an undiluted basis at any given time, it shall be entitled to nomin...