Healthscreen Solutions Inc.
TSX VENTURE : MDU

Healthscreen Solutions Inc.

April 07, 2009 18:10 ET

Healthscreen Secures Access to an Additional $1,000,000 in Working Capital

TORONTO, ONTARIO--(Marketwire - April 7, 2009) - Healthscreen Solutions Inc. (TSX VENTURE:MDU), the leading Canadian provider of physician practice enhancement services and electronic medical record software, announced today that it has amended and augmented its debt financing agreement with Wellington Financial LP ("Wellington") to gain access to approximately $1,000,000 in additional working capital including a six month addition to the facility through the issuance of secured debentures in the principal amount of $550,000 and the amendment of certain covenants in the existing facilities.

The new debentures mature on September 30, 2009 and carry an interest rate of 12.75% per annum, while the amendment to the covenants under the existing facilities with Wellington will free up an additional $500,000 in working capital. The newly available funds will be used to fund the company's general working capital needs, more specifically to fund its physician liabilities.

"With the tremendous growth in acceptance of our PrevCare service, Healthscreen has found the need for additional working capital financing to support the growth of this seasonally government funded program, while balancing the funding needs of other lines of business including CallerMD, HealthAlert, EMR software and the new diabetes management service," said Justin Belobaba, President and CEO of Healthscreen. "Ensuring that the company has continuous access to growth capital may not be easy in this market, however, we continue to be fortunate that the strength of our business and management team continue to attract the support necessary."

In consideration for the extension of the additional $550,000, Healthscreen has issued Wellington 543,582 common shares in the capital of the Company. In addition, in connection with the amendments made to the existing facilities with Wellington, Healthscreen incurred a fee of $125,000 to Wellington. Healthscreen has issued 781,250 Healthscreen common shares to Wellington in satisfaction of that fee.

LaBarge Weinstein Professional Corporation and Stikeman Elliott LLP provided legal advice for the parties involved in this transaction.

About Healthscreen Solutions

Healthscreen Solutions (www.healthscreen.com) provides a comprehensive suite of practice enhancement 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 governmentset 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 fulltime physicians who are responsible for the health care of more seven million Canadian patients. For more information, visit www.healthscreen.com.

About Wellington Financial LP

Wellington Financial LP is a privately held specialty finance firm providing operating lines of credit, term, venture and amortizing loans up to $40 million. Wellington Financial LP is currently deploying a $450 million investment program via its third fund. Wellington Financial LP is managed by a partnership controlled by fund management and Clairvest Group Inc. (TSX:CVG), who jointly have contributed a large financial stake to Fund III. Limited partners include several of Canada's largest institutional investors, crown corporations, financial institutions and pension funds. Please visit the fund website at www.wellingtonfund.com, or the Wellington Financial team blog at www.wellingtonfund.com/blog.

Disclaimer:

Statements in this release that are forward looking involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to be materially different from any future performance that may be suggested in this release. The company assumes no obligation to update any forwardlooking statements contained in this release. Trading in the securities of Healthscreen should be considered highly speculative. 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

  • Healthscreen Solutions Inc.
    Amir Nayeri
    Director Corporate Development
    1-866-534-DOCS ext. 7107
    nayeri@healthscreen.com