Nightingale CEO Acquires 5.7 Million Shares
MARKHAM, ON, Jan. 18, 2016 /CNW/ - Nightingale Informatix Corporation (TSX-V: NGH) ("Nightingale" or the "Company"), a cloud-based provider of electronic health record (EHR) software and related services, today provided a business update.
The Company announced that it has released a limited commercial version of its next generation product V10 to be deployed at specific pilot sites in Canada. It is expected that V10 will go live in the coming few weeks with general commercial release in the Spring of 2016.
The Company is also pleased to report that since the divestiture of its US practice management business in October 2015, the Company has used some of the proceeds to retire approximately $4.0 million of its secured debt and paid down other liabilities by approximately $2.5 million.
"We have experienced significant growth from our flagship product, Nightingale on Demand, with 20% CAGR over the past five years. Our recurring revenue from the Canadian operations has recently reached an annual run rate of over $7 million. We are optimistic that once our next generation product is made available to the broader Canadian market at the end of March, our recurring revenue growth will be accelerated", said Sam Chebib, President & CEO of Nightingale. "Our new cost structure after the sale of our US practice management business in October and the current recurring revenue base provides us with clear operating leverage as the recurring revenue continues to grow".
The Company also announced on behalf of its President and CEO, Sam Chebib, that Mr. Chebib has acquired 5,700,000 common shares of Nightingale in an off market transaction from Emancipation Capital. Charles Frumberg, a Director of Nightingale, is a Managing Member of Emancipation Capital. As a result of this transaction, Mr. Chebib now owns or controls 18,297,422 shares, representing approximately 19.3% of Nightingale's issued and outstanding shares, and Emancipation Capital will hold 6,229,000 shares representing approximately 6.6% of Nightingale's issued and outstanding shares. In a subsequent separate transaction Emancipation Capital acquired $200,000 of the Company's Convertible Debenture Series "C" from Mr. Chebib.
For more than a decade, Nightingale (TSX-V: NGH) has been delivering innovative cloud-based Electronic Health Record (EHR), Practice Management and Claims Clearing House solutions to healthcare organizations across Canada. Our goal is to uncomplicate the day-to-day challenges of healthcare providers. We achieve this by creating software that is truly intuitive—minimizing training and maximizing adoption. We believe so strongly in building easy-to-use software that we structured our entire product team around user-centric design. Our clients are benefiting from this focus through a well-supported and robust solution that presents a holistic view of a person's well-being in a simple, clean interface, so that the best health decisions can be made. Nightingale – One Patient. One Record is a Registered Trade Mark of Nightingale Informatix Corporation. www.nightingalemd.com
Forward Looking Statement
This press release may contain forward looking statements that are made as of the date hereof and are based on current expectations, forecasts and assumptions which involve risks and uncertainties associated with our business and the economic environment in which the business operates. In particular, statements in this release regarding anticipated future revenue growth are inherently subject to a number of assumptions and may not be realized. By their nature, forward looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution our readers of this press release not to place undue reliance on our forward looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Corporation's continuous disclosure documents that can be found on SEDAR www.sedar.com. Nightingale does not intend, and disclaims any obligation, except as required by law, to update or revise any forward looking statements whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Nightingale Informatix Corporation
For further information: David Toews, CFO, Nightingale Informatix Corporation, Tel: 905-943-2600, [email protected]; Sam Chebib, CEO, Nightingale Informatix Corporation, Tel: 905-943-2611, [email protected]