MARKHAM, ON, March 31, 2016 /CNW/ - Nightingale Informatix
Corporation (TSX-V: NGH) ("Nightingale" or the "Company"), a
cloud-based provider of electronic health record (EHR) software and
related services, announced today it has it has completed the
refinancing of the Company's existing senior loan facility (the
"Refinancing"), pursuant to which an arm's length institutional
lender (the "Lender") has provided a non-revolving secured loan in
the amount of $6,000,000 to the
Company (the "Facility"). The Facility replaces the existing senior
term loan that was held by entities associated with a former
director who holds approximately 29.6% of the common shares of the
Company.
The Facility is governed by the terms of a loan agreement
between the Company and the Lender, secured against the assets of
the Company and its subsidiaries, bears interest at a rate of Bank
of Montreal Prime plus 10.8% and carries a commitment fee of 2.3%
of the Facility. The Facility may be pre-paid without penalty
provided that certain conditions are satisfied and matures on
December 31, 2016.
In connection with the Refinancing, the Company has also issued
to the Lender, on a non-brokered private placement basis (the
"Private Placement"), a 10% Series C-2 secured subordinated
convertible debenture (the "Debenture") in the aggregate principal
amount of $1 million, which is
governed by the existing indenture between the Company and Equity
Financial Trust Company, as trustee, and which has the same terms
as the currently outstanding 10% Series C secured subordinated
convertible debentures of the Company, including a maturity date of
September 30, 2016.
The Facility and the Private Placement remain subject to the
final approval of the TSX Venture Exchange. In addition, the
Debentures and the common shares of the Company issuable upon the
conversion or redemption thereof are subject to a hold period
expiring on August 1, 2016.
About Nightingale
For more than a decade, Nightingale (TSX-V: NGH) has been
delivering innovative cloud-based Electronic Health Record (EHR)
and Practice Management solutions to healthcare organizations
across Canada. Our goal is to
uncomplicate the day-to-day challenges of healthcare providers. We
achieve this by creating software that is truly
intuitive—minimizing training and maximizing adoption. We believe
so strongly in building easy-to-use software that we structured our
entire product team around user-centric design. Our clients are
benefiting from this focus through a well-supported and robust
solution that presents a holistic view of a person's well-being in
a simple, clean interface, so that the best health decisions can be
made. Nightingale - One Patient.
One Record,
www.nightingalemd.com.
Forward Looking Statement
This press release may contain "forward-looking statements"
within the meaning of applicable Canadian securities legislation.
Generally, forward-looking statements can be identified by the use
of forward-looking terminology such as "plans", "expects" or "does
not expect",, "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or state that certain actions, events or results "may
"could", "would", "might", "occur" or "be achieved'.
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Nightingale to be
materially different from those expressed or implied by such
forward-looking statements, including but not limited to: the
ability of Nightingale to service the interest and to repay the
principal on its debt and risks of default thereunder including but
not limited to the Facility and the Debenture; risks associated
with obtaining the required final approval of the Exchange for the
Facility and the Private Placement and other approvals related to
its debt; risks related to the speculative nature of the medical
software industry, which is affected by numerous factors beyond
Nightingale's control; the ability of Nightingale to successfully
secure customer contracts and the timing of securing such
contracts; the ability of Nightingale to successfully develop and
market the V10 platform; Nightingale's future access to debt
and capital facilities; the existence of present and possible
future government regulation; the significant competition that
exists in the medical software industry; the early stage of
Nightingale's business, and risks associated with early stage
companies, including uncertainty of revenues, markets and
profitability and the need to raise additional funding. All
material assumptions used in making forward-looking statements are
based on management's knowledge of current business conditions and
expectations of future business conditions and trends. Certain
material factors or assumptions applied by management in making
forward-looking statements, include without limitation, factors and
assumptions regarding future trends in healthcare spending,
economic conditions affecting Nightingale and North American
economies; Nightingale's ability to continue to fund its business,
rates of customer defaults, relationships with, and payments to
lenders, as well as Nightingale's operating cost structure.
Although Nightingale has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. Nightingale does not undertake to update any
forward-looking statements that are incorporated by reference
herein, except in accordance with applicable securities laws.
Further information, including a description of the risk factors
affecting the Company, on Nightingale Informatix Corporation is
available in the Company's management's discussion and analysis for
2015 and other continuous disclosure documents filed on
www.sedar.com.
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 release.
SOURCE Nightingale Informatix Corporation