|By Marketwired .||
|December 16, 2013 05:21 PM EST||
HOUSTON, TX -- (Marketwired) -- 12/16/13 -- Northstar Healthcare Inc. (TSX: NHC) ("Northstar" or the "Company") today announced that it has closed the brokered private placement previously announced on December 4, 2013 (the "Private Placement") and led by PI Financial Corp. as agent (the "Agent").
The Company raised gross proceeds of $4,690,000 in the Private Placement through the issuance of a total of 5,862,500 units (each, a "Unit"), at a price of $0.80 per Unit. Each Unit consists of one common share in the capital of the Company (each, a "Share") and one-half of one transferable common share purchase warrant exercisable for one additional Share at a price of $1.10 until December 16, 2015.
Harry Fleming, Northstar's Chief Financial Officer, commented: "We are very pleased with the completion of this financing. While there was strong interest in the Private Placement, the total amount of the raise was ultimately limited by Toronto Stock Exchange requirements for shareholder approval which would have significantly delayed the placement and greatly increased overall expenses."
Pursuant to an agency agreement entered into between the Company and the Agent, an aggregate of 410,375 transferable Agent's warrants (the "Agent's Warrants") were issued to the Agent, representing 7% of the Units sold in the Private Placement. Each Agent's Warrant is exercisable for one additional Share at a price of $0.95 until December 16, 2015. In addition, the Agent has also been paid a cash commission representing 7% of the gross proceeds of the Private Placement.
All of the securities issued pursuant to the Private Placement are subject to a four month hold period expiring on April 17, 2014. The Private Placement remains subject to final approval from the Toronto Stock Exchange.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities 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 within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Northstar Healthcare Inc.
Northstar partners with physicians in the ownership and management of ambulatory facilities and healthcare services. Northstar owns and manages interests in three ambulatory surgery centers, two in Houston and the third in Dallas.
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the Private Placement and more generally, the business of Northstar Healthcare Inc. (the "Company") and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. These risks and uncertainties are discussed in the Company's regulatory filings available on the Company's web site at www.Northstar-Healthcare.com or at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances.
For more information, contact:
Tel: (713) 840-5180
E-mail: Email Contact