Healthscreen Solutions Inc.

Healthscreen Solutions Inc.

April 21, 2010 18:29 ET

Healthscreen Announces Private Placement

Immediate gross proceeds of $1.3M to strengthen working capital position and fund new product development

TORONTO, ONTARIO--(Marketwire - April 21, 2010) - Healthscreen Solutions Inc. (TSX VENTURE:MDU) ("Healthscreen" or the "Company") the premier supplier of physician practice enhancing services and electronic medical record (EMR) software to the Canadian market, announced today that that it has completed a private placement with an affiliate of NorthStar Bancorp Ltd. ("NorthStar") of Toronto and one other private investor, resulting in gross proceeds of $1.3 million.

In connection with the private placement, Healthscreen has issued 5,777,778 common shares at $.225 per share and warrants to purchase 5,777,778 common shares with an exercise price of $.30 and a one year term.

The proceeds from the financing will be used for working capital and general corporate purposes. The securities issued under this private placement are subject to restrictions on transfer, including a hold period ending on August 20, 2010.

Northstar has also agreed, subject to certain conditions, including Healthscreen achieving financial performance targets and obtaining any applicable regulatory and shareholder approvals, to purchase an additional $1.25 million worth of common shares and warrants on the one year anniversary of the original private placement.

In addition to providing funding, NorthStar will serve as Healthscreen's exclusive acquisition advisor for the next twelve months, will be entitled to observer status on Healthscreen's board of directors and will have a right to participate in and provide any equity financing required by Healthscreen over the next twelve months.

"With the rapid growth that Healthscreen has experienced over the last few quarters, this capital comes to us at a great time. And, it comes from a great source; we are extremely excited to tap into NorthStar's resources and knowledge" said Mr. Justin Belobaba, President and CEO of Healthscreen. "Issuing these securities at a premium to market is a testament to the confidence that Northstar has in the Company. From a long-term perspective, we are pleased that the expiry of the warrants from the first tranche and the proceeds from the second tranche will coincide with the maturity of our existing debt facilities."

"We are excited to be working with Healthscreen to leverage its unique position in the market and to continue to expand their high value added services" stated Mr. Jeffrey S. Watts, President and CEO of NorthStar. He further commented that "we see this as a first step in a long term relationship to which we intend to bring significant resources to assist Healthscreen in achieving its vision." 

LaBarge Weinstein Professional Corporation provided legal advice for this transaction.

About Healthscreen Solutions

Healthscreen Solutions ( provides a comprehensive suite of practice enhancing products and services to increase physician productivity and revenue while reducing costs and improving patient care. The Company's portfolio includes billing and scheduling software, electronic medical records software, CallerMD which assists physicians in managing a range of uninsured medical services, PrevCareMD which helps physicians earn supplemental income by achieving government-set preventive care targets, and HealthAlert which allows physicians to help their patients in managing complex healthcare issues. Healthscreen's and its partners' services and software are used by over 8,000 full-time physicians who are responsible for the health care of more than seven million Canadians.

© 2010 Healthscreen Solutions Inc. All Rights Reserved.

Disclaimer: Forward Looking Statements

This press release contains information that is forward looking information with respect to Healthscreen within the meaning of Section 138.4(9) of the Ontario Securities Act and other applicable securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or the negative of theses terms or other similar expressions concerning matters that are not historical facts. In particular, statements about future revenues or profitability, including the estimated timing of profitability, and any other statements regarding Healthscreen's future expectations, beliefs, goals or prospects are or involve forward-looking information.

Forward-looking information is based on certain factors and assumptions. While the company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking information, by its nature necessarily involves risks and uncertainties, including risks and uncertainties relating to government regulation and funding in the healthcare industry, financial and capital market risks, technology development and adoption, Healthscreen's ability to maintain its competitive position and effectively implement it's acquisition strategy, liability for software malfunction, management of growth, and length of sales cycles. Additional risks and uncertainties affecting Healthscreen can be found in Healthscreen's 2009 Annual Report and Management's Discussion and Analysis for the Fiscal Year ended September 30, 2009 filed on SEDAR at If any of these risks or uncertainties were to materialize or if the factors and assumptions underlying the forward-looking information were to prove incorrect, actual results could vary materially from those that are expressed or implied by the forward-looking information contained herein. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.  Trading in the securities of Healthscreen should be considered highly speculative.

The TSX Venture Exchange has in no way approved nor disapproved the contents of this new release.

Contact Information

  • Healthscreen Solutions Inc.
    Justin Belobaba
    President and CEO
    1-866-534-DOCS ext. 7015