SOURCE: Agility Health, Inc.

Agility Health, Inc

September 15, 2014 05:30 ET

Agility Health Announces Issuance of Convertible Debenture to the Bloom Burton Healthcare Structured Lending Fund

TORONTO, ON--(Marketwired - September 15, 2014) -  Agility Health, Inc. (TSX VENTURE: AHI) ("Agility Health" or the "Company"), a leading provider of physical rehabilitation and software services that benefit patients, healthcare providers and employers, is pleased to announce that it has issued an unsecured convertible debenture to The Bloom Burton Healthcare Structured Lending Fund LP (the "Lender" or "Bloom Burton Fund") in the principal amount of up to USD $1,250,000. Funds received by the Company under the convertible debenture will be repayable on September 12, 2017, accrue interest at a rate of 10% per annum payable in cash at maturity, and be convertible in whole or in part into common shares of the Company at a price of CAD$0.50 per common share based on an exchange rate of CAD$1.0891 for every USD$1.00 for a maximum of 2,722,750 common shares.

Under the debenture, the Company has the right to draw funds in increments of USD $250,000, and will issue 100,000 common share purchase warrants to the Lender for each increment drawn down. The warrants will be exercisable into common shares of the Company at a price of CAD$0.50 per common share for a period of five years, subject to a forced exercise provision in the event the Company's common shares trade at a price of more than CAD $0.80 for 20 consecutive trading days and, during such period, at least 100,000 of the Company's common shares are traded. An amount of $750,000 has been drawn under the debenture and a number of 300,000 warrants have been issued to the Lender as of the date hereof. Funds received by the Company under the debenture will be used for working capital and general corporate purposes. Steven N. Davidson, CEO of Agility Health said, "We are pleased to have a new investment partner in the Bloom Burton Fund that shares in Agility Health's long-term vision and strategy." The debenture and any common shares that may be issued upon its conversion are subject to a statutory resale restriction until January 12, 2015. The transaction has been conditionally approved by the TSX Venture Exchange and is subject to its final approval.

About Agility Health

Through its subsidiary and principal operating entity, Agility Health, LLC, Agility Health operates a multi-state network of outpatient rehabilitation clinics and provides contracted services to hospitals, nursing homes and other institutional clients, providing care and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers, and a variety of other injuries and conditions. In addition, Agility Health provides a number of ancillary services related to physical rehabilitation, including practice management software systems and custom orthotics. Agility Health operates 74 outpatient or onsite rehabilitation locations in 17 states. Agility Health's contract therapy services business provides rehabilitative services to 41 hospitals and inpatient rehabilitation units, 36 nursing homes, long-term care facilities and other service locations in 9 states. For more information, please visit investors.agilityhealth.com.

Forward-looking Statements

Certain statements in this news release may be forward-looking. These statements relate to future events and reflect the current assumptions and expectations of management of the Company. Certain unknown factors may affect the events, economic performance and results of operation described herein. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law.

Neither 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.

Contact Information

  • For further information please contact:

    Mr. Ray Matthews
    Ray Matthews & Associates
    Tel: (604) 818-7778
    ray@raymatthews.ca