/NOT FOR DISTRIBUTION IN THE UNITED STATES WIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES/
SAN FRANCISCO, CA, Nov. 29, 2013 /CNW/ - Patient Home Monitoring Corp.
("PHM" or the "Company") (TSXV:PHM) has announced its Board of Directors has approved a
private placement of up to $5,000,000 to be used to close acquisitions
from its growing pipeline of potential target companies and for
additional working capital and general corporate purposes.
PHM has engaged Beacon Securities Limited ("Beacon" or the "Agent") to complete a best efforts private placement offering of up to
21,740,000 units (the "Units") of the Company at $0.23 per unit, each unit consisting of one common
share and one share purchase warrant, each whole warrant entitling the
holder to acquire one additional common share of the Company at a price
of $0.36 per share for a period of 24 months, subject to certain
acceleration provisions in the event the Company's 20-day volume
weighted average price exceeds $0.42, for gross proceeds to the Company
of up to $5,000,000 (the "Offering"). The Company has granted Beacon an over-allotment option to increase
the size of the Offering by up to an additional 15%, of the total
number of Units to be issued under the Offering, at any time on or
before two days prior to the Closing Date for additional gross proceeds
to the Company of up to $750,000.
PHM intends to use the net proceeds from the sale of the Units for
making acquisitions in the large and fragmented market of small,
profitable businesses providing healthcare products and services to
chronically ill patients and for working capital and general corporate
purposes. PHM has recently signed Letters of Intent (LOIs) for two
additional acquisitions and is engaged in negotiations with several
more potential acquisition candidates. These potential acquisitions
would be highly accretive to PHM's earnings and would provide excellent
opportunities to increase revenue through offering additional services
to its entire patient base, thereby increasing revenue per patient and
achieving organic post acquisition growth.
The Offering is expected to close on or about December 18th (the "Closing Date"), or such other date as the Company and Beacon may agree upon and is
subject to receipt of all necessary corporate and regulatory approvals,
including the approval of the TSX Venture Exchange. All securities
issued in connection with the Offering will be subject to a statutory
hold period of four months plus one day from the date of issuance in
accordance with applicable securities legislation.
"We are again extremely pleased with the amount of support we are
receiving from the capital markets as the Company continues to
accelerate profit growth." Michael Dalsin, Chairman of PHM, said.
"Building additional cash on our balance sheet will enable us to
accelerate our acquisitions and drive profit growth even higher. We
have a large and growing list of interested acquisition candidates.
Capital markets support if a key ingredient to this strategy and we
believe Beacon will be a great capital partner moving forward."
The Units will be offered and sold by way of private placement
exemptions in all provinces of Canada and in jurisdictions other than
Canada that are mutually agreed to by the Company and Beacon.
The securities have not been and will not be registered under the U.S.
Securities Act of 1933, as amended (the "1933 Act"), or under any state securities laws, and may not be offered or sold,
directly or indirectly, or delivered within the United States or to, or
for the account or benefit of, U.S. persons (as defined in Regulation S
under the 1933 Act) absent registration or an applicable exemption from
the registration requirements. This news release does not constitute an
offer to sell or a solicitation to buy such securities in the United
The explosive growth in the number of elderly patients in the US
healthcare market is creating pressure to provide more efficient
delivery systems. Healthcare providers, such as hospitals, physicians
and pharmacies, are seeking partners that can offer a range of products
and services that improve outcomes, reduce hospital readmissions, and
help control costs. PHM fills this need by delivering a growing number
of specialized products and services to achieve these goals.
PHM is currently a positive cash flow and profitable company servicing
patients with chronic heart disease and will act as a platform for
acquisitions. PHM is focused on a highly fragmented and developing
market of small privately-held companies servicing chronically ill
patients with multiple disease states caused mainly by age and obesity.
Because of the new and highly fragmented nature of the market, PHM is
actively working to identify and evaluate profitable, annuity-based
companies to acquire their patient databases and technical expertise at
favorable prices. PHM's post acquisition organic growth strategy is to
increase annual revenue per patient by offering multiple services to
the same patient, consolidating the patient's services and making life
easier for the patient. The expected result is growing EPS with each
acquisition and growing revenue and profits from the cross selling
Information in this news release that is not current or historical
factual information may constitute forward-looking information within
the meaning of securities laws. Implicit in this information,
particularly in respect of the future outlook of PHM and anticipated
events or results, are assumptions based on beliefs of PHM's senior
management as well as information currently available to it. While
these assumptions were considered reasonable by PHM at the time of
preparation, they may prove to be incorrect. Readers are cautioned that
actual results are subject to a number of risks and uncertainties,
including the availability of funds and resources to pursue operations,
decline of reimbursement rates, dependence on few payors, possible new
drug discoveries, a novel business model, dependence on key suppliers,
granting of permits and licenses in a highly regulated business,
competition, low profit market segments as well as general economic,
market and business conditions, and could differ materially from what
is currently expected.
SOURCE: Beacon Securities Limited
For further information:
Michael Dalsin, Chairman
Stanmore Capital Partners, Inc.