Patient Home Monitoring Corp.
TSX VENTURE : PHM

August 28, 2014 09:17 ET

PHM Completes $8.625 Million Subordinated Debt Financing; PHM Now Has Over $14.5 Million in Cash to Close Several Profitable Acquisitions

LOS ANGELES, CALIFORNIA--(Marketwired - Aug. 28, 2014) -

NOT FOR DISTRIBUTION IN THE UNITED STATES WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Patient Home Monitoring Corp. ("PHM" or the "Company") (TSX VENTURE:PHM) is pleased to announce that it has completed its previously announced brokered private placement of subordinated debentures for gross proceeds of $8,625,000 to be used for acquisition purposes, medical equipment and general working capital.

"With our current cash position, we plan to make several impactful acquisitions" said Michael Dalsin, Chairman of PHM. "Given our current balance sheet, and with the free cash flow that we are generating, I believe we can achieve our goal of increasing revenues without any further financings. I would like to thank Mackie Research and Beacon Securities for their efforts in this financing. As the Chairman and a large shareholder, I continue to be focused on significantly increasing Earnings per Share quarter after quarter."

PHM announced on August 12, 2014 that it engaged a syndicate of agents, led by Mackie Research Capital Corporation and including Beacon Securities Limited (the "Agents") to complete a best efforts private placement offering of debenture units ("Units") of approximately $7,500,000 (the "Offering"). The Agents were also offered the option to increase the size of the Offering by up to 1,125 additional Units for additional aggregate gross proceeds to the Company of up to $1,125,000. The Agents exercised their option in full, and placed 8,625 Units for gross proceeds to the Company of $8,625,000. This Offering positions PHM to continue to pursue attractive healthcare acquisitions. PHM seeks to continue to make acquisitions in the large and fragmented market of small, profitable businesses providing healthcare products and services to chronically ill patients and for working capital and general corporate purposes.

Each Unit consisted of one $1,000 principal amount non-convertible unsecured subordinated debenture and nine hundred transferable common share purchase warrants, with each warrant entitling the holder thereof to acquire one common share in the capital of PHM at a price of $0.45 per share until August 27, 2019, subject to acceleration at any time following 12 months from closing in the event the volume weighted average trading price of the common shares of PHM exceeds $0.55 for a period of twenty consecutive trading days.

In connection with the Offering, PHM paid a cash commission of $172,500, and issued broker warrants to purchase 5,744,250 shares of PHM at $0.45 until August 27, 2019, subject to the aforementioned acceleration provisions.

The Offering closed on August 27, 2014, subject to final approval of the Exchange. All securities issued in connection with the Offering will be subject to a statutory hold period until December 28, 2014 in accordance with applicable securities legislation. On or about December 29, 2014 the debentures are expected to commence trading under a ticker symbol to be announced.

The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.

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.

About PHM

The explosive growth in the number of elderly patients in the US healthcare market is creating pressure to provide more efficient delivery systems. Healthcare providers, such as hospitals, physicians and pharmacies, are seeking partners that can offer a range of products and services that improve outcomes, reduce hospital readmissions, and help control costs. PHM fills this need by delivering a growing number of specialized products and services to achieve these goals.

PHM is currently a positive cash flow and profitable company servicing patients with chronic heart disease and will act as a platform for acquisitions. PHM is focused on a highly fragmented and developing market of small privately-held companies servicing chronically ill patients with multiple disease states caused mainly by age and obesity. Because of the new and highly fragmented nature of the market, PHM is actively working to identify and evaluate profitable, annuity-based companies to acquire their patient databases and technical expertise at favorable prices. PHM's post acquisition organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient's services and making life easier for the patient. The expected result is growing EPS with each acquisition and growing revenue and profits from the cross selling efforts.

Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of PHM and anticipated events or results, including but not limited to the anticipated use of the net sale proceeds of the Offering, are assumptions based on beliefs of PHM's senior management as well as information currently available to it. While these assumptions were considered reasonable by PHM at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including the availability of funds and resources to pursue operations, decline of reimbursement rates, dependence on few payors, possible new drug discoveries, a novel business model, dependence on key suppliers, granting of permits and licenses in a highly regulated business, competition, low profit market segments as well as general economic, market and business conditions, and could differ materially from what is currently expected.

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