BERKELEY HEIGHTS, N.J., March 16, 2012 (GLOBE NEWSWIRE) -- Authentidate Holding Corp. (Nasdaq:ADAT), a provider of secure web-based software applications and telehealth products and services for healthcare organizations, announced that it has completed a $4.0 million secured loan financing with certain accredited investors. The group of investors included three Authentidate board members, Mr. J. David Luce, Mr. John J. Waters, and Mr. O'Connell Benjamin, who is also the Company's Chief Executive Officer, as well as Mr. William Marshall, Chief Financial Officer of Authentidate. In connection with the financing the company issued approximately $4.0 million of senior secured promissory notes and approximately 6 million warrants to the investors. The notes are not convertible into equity securities and no interest is due on the notes. The notes are due and payable on the earlier of the ten month anniversary of the issue date or the completion of a subsequent financing as defined in the investor agreements. The warrants are exercisable for 54 months commencing six months from the issue date at an exercise price of $0.67 per share.
Ben Benjamin, Chief Executive Officer of Authentidate, stated "We are pleased to have raised these additional funds which will be used primarily for general business and working capital purposes, including the anticipated rollout of our telehealth project with the U.S. Department of Veterans Affairs and, if necessary, to redeem our preferred stock. We appreciate the continued support from the investors that participated in this financing and we believe that the proceeds from this financing will enable us to continue to focus on growing our business."
For further details, see the company's Current Report on Form 8-K filed with the Securities and Exchange Commission on March 14, 2012.
This release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state. The securities were offered and sold in a private placement under the Securities Act of 1933, as amended (the "Securities Act") and the regulations promulgated thereunder. Such securities were offered and sold only to accredited investors and have not been registered under the Securities Act or applicable state securities laws. Accordingly, such securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.
About Authentidate Holding Corp.
Authentidate Holding Corp. is a provider of secure web-based software applications and telehealth products and services that enable healthcare organizations to coordinate care for patients and enhance related administrative and clinical workflows. Our products and services enable healthcare organizations to increase revenues, reduce costs and enhance patient care by eliminating paper and manual work steps from clinical and administrative processes. Our ExpressMD telehealth solution combines Electronic House Call, an FDA 510(k) cleared in-home patient vital signs monitoring system, with a web application that streamlines patient monitoring. Delivered as Software as a Service (SaaS), customers only require an Internet connection and web browser to access our web-based applications thereby utilizing previous investments in systems and technology. The company's healthcare customers and users include leading homecare companies, health systems, physician groups and governmental entities. These organizations utilize the company's products and services to coordinate care for patients outside of acute-care.
For more information, visit the company's website at www.authentidate.com
This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Act of 1934. When used in this release, the words "believe," "anticipate," "think," "intend," "plan," "will be," "expect," and similar expressions identify such forward-looking statements. Such statements regarding future events and/or the future financial performance of the company are subject to certain risks and uncertainties, which could cause actual events or the actual future results of the company to differ materially from any forward-looking statement. Such risks and uncertainties include, among other things, the availability of any needed financing, the company's ability to implement its business plan for various applications of its technologies, the impact of competition, the management of growth, and the other risks and uncertainties that may be detailed from time to time in the company's reports filed with the Securities and Exchange Commission. In light of the significant risks and uncertainties inherent in the forward-looking statements included herein, the inclusion of such statements should not be regarded as a representation by the company or any other person that the objectives and plans of the company will be achieved.
Authentidate and Inscrybe are registered trademarks of Authentidate Holding Corp. ExpressMD is a trademark of ExpressMD Solutions, LLC. All other trade names are the property of their respective owners.