Medworxx Solutions Inc.

Medworxx Solutions Inc.

May 24, 2012 12:19 ET

Medworxx Solutions Inc. Closes Private Placement Offering of Units

TORONTO, ONTARIO--(Marketwire - May 24, 2012) -


Medworxx Solutions Inc. ("Medworxx" or the "Corporation") (TSX VENTURE:MWX) is pleased to announce that it has closed its previously announced private placement with Paradigm Capital Inc., acting as lead agent and sole bookrunner, and MGI Securities Inc. (the "Agents") on a best efforts agency basis. The Corporation issued today 9,136,754 units (the "Units") at a price of $0.34 per Unit for aggregate gross proceeds of $3,106,496 (the "Offering"). Each Unit is comprised of one common share and one half of one common share purchase warrant, with each whole warrant entitling the holder thereof to acquire one common share of the Corporation at a price of $0.40 for a period of 48 months following the closing of the Offering, subject to early expiry at the option of the Company in the event that, at any time following the date that is twenty-four months from their issuance date, the closing price of the Corporation's common shares on any nationally recognized stock exchange is greater than $0.85 for a period of twenty trading days in any consecutive two-month period.

On closing, the Agents received a cash commission equal to 8% of the gross proceeds raised by the Agents in the Offering as well as broker compensation options entitling the holders to acquire 716,456 Units for a period of 24 months from the closing date, with such Units, upon issuance, having the same terms and conditions as the Units sold pursuant to the Offering. In addition, the Agents were granted an over-allotment option to sell up to an additional 15% of the number of Units sold in the Offering, which option was exercised on closing for the issuance of 661,577 Units and such Units are included the total number of Units issued as stated above.

The proceeds from the sale of the Units will be used for sales, general and administrative expenditures to increase the Corporation's sales for across North America and the United Kingdom, and for general working capital purposes.

"Medworxx is well-positioned to build on our success in the Canadian and UK markets as we expand internationally. Our investor base, which now includes a strong institutional contingent, has given a vote of confidence that we'll come out of the gates with strength to leverage this increased working capital," said Dan Matlow, CEO and President of Medworxx Inc.

All of the securities issued in connection with the Offering are subject to a hold period expiring on September 25, 2012.

About Medworxx

Medworxx delivers health information technology solutions to over 300 clients internationally; including Canada, United States and United Kingdom. Medworxx helps hospitals meet patient flow challenges, and requirements in compliance and education. Medworxx Utilization Management system-flagship of Medworxx PF that also includes bed optimization and independent assessment components-currently serves over 30% of the acute care beds in Canada. Founded in 2004, Medworxx Inc. is based in Toronto, ON, and publicly traded on the TSX Venture Exchange: MWX.

Disclaimers: The statements made in this press release may contain forward-looking statements that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. Forward-looking statements involve known and unknown risks, uncertainties and other factors, such as competition, technological changes, the changing needs of hospitals, the financial condition of the Company's current and potential customers, foreign currency exchange rates, as well as general economic conditions, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The Company is under no obligation to update forward-looking statements.

Neither the 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 released.

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