/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES/
MARKHAM, ON, April 20 /CNW/ - Nightingale Informatix Corporation
("Nightingale" or the "Company") (TSX-V: NGH), a leading provider of software
solutions to the North American healthcare industry, today closed its
previously announced subordinated credit facility, which was led by Wellington
Financial LP and included Export Development Canada, a Limited Partner in
Wellington Financial Fund III (the "Lenders"). Nightingale drew
CDN$12.0 million of the total CDN$15.5 million available under the facility.
Nightingale has used the net proceeds to fund a portion of the
approximately US$13.0 million purchase price of its previously announced
acquisition of VantageMed Corporation ("VantageMed"), a leading provider of
practice management software in the United States with approximately
6,000 clients representing over 18,000 healthcare providers, and for general
corporate purposes. The acquisition closed April 19, 2007.
Nightingale also completed a public offering of 25.0 million Subscription
Receipts at a purchase price of $0.40 per Subscription Receipt, for aggregate
gross proceeds of $10.0 million to fund the remaining portion of the purchase
price for VantageMed and for general corporate purposes.
The credit facility is a secured 24 month term loan facility, at an
average interest rate of 12.75% per annum. It is secured against all of the
assets of Nightingale and VantageMed.
Nightingale paid the Lenders a commitment fee and 7,994,186 special
warrants. Each special warrant is convertible into common share purchase
warrants, each entitling the holder to purchase one common share of
Nightingale at a price of $0.43 per share for five years from the date of
closing. These special warrants, and as applicable, the warrants and common
shares are subject to a four-month hold period pursuant to securities laws and
Nightingale Informatix Corporation is one of North America's fastest
growing healthcare application service providers (ASP) for outpatient clinics.
Nightingale's Internet-based Electronic Health Record (EHR), Electronic
Medical Record (EMR) and practice management solutions are designed to help
physicians, clinics, hospitals and other healthcare organizations more
efficiently manage their operations and patient records.
Nightingale's products and services offer physicians in the United States
and Canada leading-edge functionality for clinical documentation, patient
scheduling, resource scheduling, billing, transcription, end-to-end coding and
claims processing, data management, work flow tools, laboratory interfaces,
documentation management and patient portals, along with other real-time
services. The company's proprietary offerings of software include Nightingale
On-Demand, Entity and Physician WorkStation, providing physicians with a fully
integrated, simple-to-use system that automates daily tasks and creates a
single, accessible source of patient data.
Forward Looking Statement
This press release contains "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", "is expected",
"budget", "scheduled", "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" or "will be taken", "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:
risks related to the offering and the VantageMed acquisition not being
completed on favourable terms, or at all, speculative nature of the medical
software industry, which is affected by numerous factors beyond Nightingale's
control; the ability of Nightingale to successfully integrate its acquisitions
and any liabilities arising as a result of such acquisitions; the existence of
present and possible future government regulation; the significant and
increasing competition that exists in the medical software industry; the early
stage of Nightingale's business; and therefore it is subject to the risks
associated with early stage companies, including uncertainty of revenues,
markets and profitability and the need to raise additional funding. In
particular, there is no assurance that the acquisition of VantageMed
Corporation will be completed upon the announced terms or at all.
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 on Nightingale Informatix
Corporation is available at www.sedar.com.
The TSX Venture Exchange Inc. has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Dave Mason, Investor Relations, The Equicom
Group, Tel: (416) 815-0700 x 237, Email: firstname.lastname@example.org; Crystal
Quast, Media Relations, The Equicom Group, Tel: (416) 815-0700 x 240, Email: