Open Source Health Corporation Closes $1.2M Financing
Toronto, ONTARIO – January 27, 2014 – Open Source Health Corporation (“OSH” or the “Company”) is the first cloud based integrated healthcare platform for women that allows women to proactively take control of their own healthcare. OSH is pleased to announce that it has closed private placement financings for total gross proceeds of $1,218,500 (the “Offering”).
“The response has been phenomenal,” said Sonya Satveit, CEO of Open Source Health. “The OSH vision of helping women to orchestrate their own wellness by taking a pro-active approach to their healthcare has been met with a great deal of enthusiasm. It resonates with people – and as a result we’ve seen an overwhelming interest from the Health IT and patient communities, as well as from the financial sector.”
The Offering consisted of an aggregate of 2,437,000 units of the Company (“Units”) at a purchase price of $0.50 per Unit. Each Unit consists of one common share and one common share purchase warrant exercisable at $0.60 for a period of two years from the date of issuance.
On December 10, 2013, OSH and Sunshine Capital Corporation (“Sunshine”) entered into an agreement of purchase and sale whereby Sunshine will acquire 100% of the shares of OSH (the “Transaction”). Sunshine has also applied to list on the Canadian Securities Exchange (“CSE”). Sunshine held a shareholders’ meeting on October 15, 2013 to approve, among other things, a name change to Open Source Health Inc. In connection with this proposed Transaction, each OSH common share will be acquired by Sunshine for one Sunshine common share and one half of a share purchase warrant of Sunshine exercisable at $0.85 for a period of one year from the date of the completion of the Transaction. The outstanding warrants and options of OSH will also be exchanged for Sunshine warrants and options on a one-for-one basis. Upon completion of the Transaction, Open Source Health Inc. will be a public company listed on the CSE and the former OSH shareholders will hold approximately 88.47% of its outstanding shares.
The net proceeds of the Offering will be used for product development, sales and marketing, acquisition costs and general corporate purposes.
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of OSH, including, but not limited to, the uncertainty of the Transaction proceeding, the impact of general economic conditions, industry conditions, dependence upon regulatory and shareholder approvals, the execution of definitive documentation and the uncertainty of obtaining additional financing.
Forward Looking Statements:
Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law