/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES./
TORONTO, Dec. 22, 2011 /CNW/ - Centric Health Corporation ("Centric Health" or "the Company") (TSX: CHH) announced today that it
has completed the first closing of its previously announced offering of
units (the "Units") made pursuant to a shelf prospectus supplement
dated December 13, 2011 to the Company's base shelf prospectus filed on
October 21, 2011. The Company sold 1,000 Units at a price of $10,000
per Unit for gross proceeds of $10,000,000, with over 80% of the gross
proceeds coming by way of a Directed Share Program.
"We are very pleased with the strong support we have received for the
Offering from our employees and the many health care professionals
across Canada," said Dr. Jack Shevel, Executive Chairman of Centric
Health. "Building on the same culture of innovation with which we
approach our business, this Offering is unique in the Canadian capital
markets because it provides an opportunity for employees and associates
to invest in an industry they serve and understand, while aligning
healthcare providers with our pursuit to deliver a unique brand of care
to consistently exceed patients' expectations. At the time of this
first closing, we have expanded our shareholder base with healthcare
professionals and Centric Health employees throughout the country. The
first closing also included significant participation from our
management team."
"We believe the strong interest in our Offering is a direct result of
the attractive structure of the units, with the intent to provide
income and stability through the Notes and direct equity ownership in
Centric Health through the Shares, Warrants and convertibility feature
of the Notes," said Peter Walkey, Chief Financial Officer of Centric
Health.
Centric Health will keep the offering open until a second and final
closing, expected to occur on the earlier of the Company raising a
total of $30 million under the Offering or the week of January 23,
2012, with pricing of the Common Shares, Notes and Warrants on the same
terms as the first closing. Any Units issued in the second and final
closing will be issued at a price of $10,000 per Unit plus the accrued
interest, with respect to the Notes, from the first closing date to the
final closing date (any Notes issued in the final closing will bear
interest from December 22, 2011).
Each Unit is comprised of three components:
-
$2,000 worth of Centric Health common shares (the "Common Shares") equal
to 1,283 Common Shares priced at $1.56 per share;
-
$8,000 principal amount of unsecured, subordinated, convertible notes
(the "Convertible Notes") due December 22, 2016 which bear interest at
an annual rate of 6% paid semi-annually; and
-
1,283 Common Share purchase warrants (the "Warrants") each of which
entitles the holder thereof to purchase one Common Share at a price of
$1.66 per share on December 22, 2016.
The base shelf prospectus and the prospectus supplement relating to the
offering were filed on SEDAR and can be obtained from SEDAR at http://www.sedar.com.
No securities regulatory authority has either approved or disapproved of
the contents of this news release. The securities being offered have
not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the ''U.S. Securities Act''), or
any state securities laws, and may not be offered or sold in the United
States unless pursuant to an exemption therefrom. This press release is
for information purposes only and does not constitute an offer to sell
or a solicitation of an offer to buy any securities of Centric Health
in any jurisdiction.
About Centric Health
Centric Health's vision is to be Canada's premier healthcare company,
providing innovative solutions centered on patients and healthcare
professionals. As a diversified healthcare company with investments in
several niche service areas, Centric Health currently has operations in
medical assessments, disability and rehabilitation management,
physiotherapy and surgical centres, homecare, specialty pharmacy and
wellness and prevention. With knowledge and experience of healthcare
delivery in international markets and extensive and trusted
relationships with payers, physicians, and government agencies, Centric
Health is pursuing expansion opportunities into other healthcare
sectors to create value for all stakeholders with an unwavering
commitment to the highest quality of care. Centric Health is listed on
the TSX under the symbol CHH. For further information, please visit www.centrichealth.ca. Centric Health's strategic advisor is Global Healthcare Investments &
Solutions, Inc. ("GHIS") (www.ghis.us). GHIS and entities controlled by shareholders of GHIS are currently
the largest shareholders of Centric Health.
This press release contains statements that may constitute
"forward-looking information" within the meaning of applicable Canadian
securities legislation. Forward-looking information includes, among
others, statements regarding the Offering, Centric Health's business
strategy, plans and other expectations, beliefs, goals, objectives,
information and statements about possible future events. Readers are
cautioned not to place undue reliance on such forward-looking
statements. Forward-looking statements are based on current
expectations, estimates and assumptions that involve a number of risks
(including, without limitation, those described in the Prospectus)
which could cause actual results to vary materially from those
anticipated by Centric Health and described in the forward-looking
information contained in this press release. No assurance can be given
that any of the events anticipated by the forward-looking information
will transpire or occur or, if any of them do so, what benefits Centric
Health will derive therefrom.