TORONTO, May 28, 2014 /CNW/ - Centric Health Corporation ("Centric Health" or "the Company") (TSX: CHH), Canada's leading diversified healthcare company, today announced that Global Health Investment and Solutions, Inc. ("GHIS"), a significant shareholder of the Company, has exercised 18,650,000 common share purchase warrants (the "Warrants") at an exercise price of $0.33 per common share totaling $6,154,500. The exercise price represents an approximate 22% premium to the last five-day volume weighted average of the market price for shares of the Company. The Warrants were originally issued to GHIS on May 29, 2009 and were exercisable through May 29, 2014 at $0.33 per share.
"We firmly believe that under the stewardship of Centric Health's Board of Directors and experienced and committed management team, the Company has a sustainable, meaningful role to play in delivering exceptional quality care and outcomes to Canadians," said Dr. Jack Shevel, President, GHIS, and Executive Chairman, Centric Health. "GHIS's decision to exercise these warrants is indicative of our continued confidence in Centric Health's strong, long-term potential."
A portion of the proceeds from the exercise of the Warrants are being used to settle in full the outstanding consulting fees owed to GHIS since June 2011 under GHIS's previous consulting agreement, and which attracted interest at 8% per annum. This settlement enhances Centric Health's balance sheet and cash flow generation.
Prior to the exercise of the Warrants, Centric Health had 151,495,764 shares issued and outstanding, of which GHIS and entities controlled and related to the shareholders of GHIS owned an aggregate of 40,901,287 shares or approximately 27% of the issued and outstanding common shares of the Company, on a non-diluted basis. After the exercise of the Warrants, Centric Health will have 170,145,764 shares outstanding, of which GHIS and entities controlled and related to the shareholders of GHIS will own an aggregate of 59,551,287 shares, representing approximately 35% of the issued and outstanding common shares of the Company, on a non-diluted basis. GHIS exercised the Warrants and acquired the Centric Health shares for investment purposes only, and continues to maintain that this applies to all of its shareholdings.
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.
About Global Healthcare Investments & Solutions
GHIS is an entrepreneurial and innovative healthcare investments and solutions company that seeks to partner with dynamic healthcare companies, healthcare professionals, management and investors to exceed their strategic goals. This is achieved through contributing intellectual and financial capital as well as services and solutions with the overarching objective of providing the highest levels of quality care and outcomes. For more information, visit www.ghis.us
This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements include, among others, statements regarding 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, which could cause actual results to vary and in some instances to differ materially from those anticipated by Centric Health and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits Centric Health will derive there-from.
SOURCE: Centric Health Corporation
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