Business
Kovo HealthTech Closes CDN$4.4M Private Placement and Secures Strategic Financing up to USD$7M
Vancouver, British Columbia--(Newsfile Corp. - April 21, 2023) - Kovo HealthTech Corporation (TSX...
About this update from Kovo+ Holdings Inc
[{"type":"text","content":"Kovo HealthTech Closes CDN$4.4M Private Placement and Secures Strategic Financing up to USD$7MVancouver, British Columbia--(Newsfile Corp. - April 21, 2023) - Kovo HealthTech Corporation (TSXV: KOVO) (the \"Company\" or \"Kovo\") — a leader in healthcare Billing-as-a-Service — announced today: (i) the closing of the non-brokered private placement financing (the \"Private Placement\") previously announced on March 22, 2023; and (ii) entering into a senior loan and security agreement (the \"Credit Agreement\") with Avonlea Ventures #2 Inc. (\"AV\") to establish a US$7.0 million credit facility (the \"Facility\").\"AV's strategic investment in Kovo will be used to drive growth through our pipeline of strategic acquisitions,\" explains Kovo CEO Greg Noble. \"AV's partnership will also accelerate further development on Kovo's SaaS-based medical billing technology platforms,\" says Noble. Private PlacementPursuant to the Private Placement, the Company issued 17,600,000 units (the \"Units\") at a price of C$0.25 per Unit for aggregate gross proceeds of CDN$4.4 million. Each Unit consisted of one common share (\"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 have been applied to retire other indebtedness of the Company, with the remainder applied to working capital. No finder's fees or commissions were paid in connection with the Private Placement.The Private Placement was approved by the TSX Venture Exchange (the \"Exchange\"), and all securities issued pursuant thereto will be subject to a four month hold period from the date of issue. In connection with the Private Placement, on March 23, 2023, Kovo shareholders approved by written resolution AV becoming a \"Control Person\" (as such term is defined in the policies of the Exchange). In connection with the Private Placement, 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 nominate two directors to the Company's board of directors (the \"Board\"). The initial nominated director to join the ...