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To be completed 3 September
Authentidate Holding Corp. (Nasdaq:ADAT), a provider of secure web-based software applications and telehealth products and services for healthcare organizations announced today that it has entered into definitive agreements with institutional and accredited investors for a direct placement of $2.47million of common stock and warrants, at a unit price of $0.71 per share and warrant for new investors and $0.75125 per share and warrant for certain affiliated investors.
In the transaction, Authentidate will issue a total of 3,463,990 shares of common stock and common stock warrants to purchase up to 1,143,115 shares of common stock. The warrants will be exercisable commencing on the six month anniversary of the date on which they are issued and have an exercise price of $0.8875 per share. The warrants will expire on the 5 year anniversary of the initial exercise date.
The company expects to complete the offering on or about September 3, 2014. Proceeds from the offering will be used for working capital and general corporate purposes. Certain officers and directors of the company, as well as an affiliate of its largest stockholder, participated in the transaction.
Ben Benjamin, Chief Executive Officer of Authentidate, stated “As we execute on our business plan, we believe we have significant opportunities for growth with both existing customers and new opportunities for our solutions. These additional funds will be used primarily for general corporate and working capital purposes to support our goals for growth. By improving our balance sheet at this juncture, we believe that we will have greater flexibility to more aggressively grow revenues, establish a greater presence in the marketplace and respond to new product orders and opportunities as they arise.”
Authentidate Holding Corp. is a provider of secure web-based software applications and telehealth products and services that enable healthcare organizations to coordinate care for patients and enhance related administrative and clinical workflows. Authentidate’s products and services enable healthcare organizations to increase revenues, reduce costs and enhance patient care by eliminating paper and manual work steps from clinical and administrative processes.
