Health Systems Solutions, Inc. Sells $9,250,000 Shares of Convertible Preferred Stock to Stanford International Bank Ltd.
Health Systems Solutions, Inc. has sold $9,250,000 shares of Converible Preferred Stock to Stanford International Bank Limited. Proceeds will be used for acquisitions and working capital. Health Systems goal is to consolidate web-based information technology companies that service the post acute healthcare industry including home health, hospice, nursing homes and others.
Tampa, Florida (PRWEB) November 14, 2005 -- Health Systems Solutions, Inc. (HSLN.OB), announced today that it will sell up to $9,250,000 of Convertible Preferred Stock to Stanford International Bank Ltd (SIBL). Amounts shall be disbursed from time to time in connection with the closing of acquisitions identified by the Company and working capital needs to the extent approved by SIBL.
The Preferred Stock is convertible by SIBL into 4,625,000 shares at a price of $2.00 per share, plus warrants to purchase up to 2,775,000 shares of common stock exercisable at $0.001 per share. The Company granted SIBL demand registration rights for the shares of common stock issuable upon conversion of the preferred stock and upon exercise of the warrants. The initial tranche, which will be used to refinance the existing secured loan from SIBL and for $100,000 of working capital, closed on November 8, 2005. Subsequent purchases by SIBL will be used to fund a portion of the purchase price for acquisitions identified by the company and working capital requirements based on the company’s projections.
"I am extremely pleased with this financing with respect to both the terms of the instrument and the continued support of the Stanford Financial Group. This financing will bolster our balance sheet and enable us to pursue our strategy of consolidating post acute information technology solutions vendors. In addition, these funds will dramatically assist us proceed to the next level of growth and continue to support the successful execution of our web-based development strategy," said Mike Milvain, CEO of Health Systems.
Danny T. Bogar, Managing Director of Stanford Group Holding and President of Stanford Group Company commented, “Stanford has been a strong financial supporter of Health Systems and its predecessor companies since the late 1990s. We are delighted that through its investment in Health Systems, Stanford is able to support the national goals identified in Senator Frist’s and Senator Clinton’s bill “The Health Technology to Enhance Quality Act of 2005”. The goals of this bill are to reduce healthcare costs, improve efficiency, and improve healthcare quality through the development of a nation-wide interoperable health information technology system. It is exciting to know that these goals are consistent with our vision for Health Systems. We strongly support Health Systems’ management’s belief that information technology will be a critical success factor in the eventual consolidation of post acute healthcare providers and we are pleased to continue to participate in financing this effort.”
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
About Health Systems Solutions, Inc.
Health Systems Solutions, through its wholly-owned subsidiary Healthcare Quality Solutions, Inc. designs, develops, markets, sells and supports web-based, management information and business intelligence services that assist home health care companies more effectively manage the daily clinical, operational and financial aspects of their business. Our systems are implemented on standard personal computers with access to the Internet using Microsoft Internet Explorer. Our architecture and fee structure enable our customers to rapidly and cost-effectively implement our systems for a modest transactional fee charged when a customer uses our programs to process patient clinical assessments. These systems have been designed to assist our customers in or by increasing revenue, reducing cost, standardizing processes, improving the quality of patient outcomes and minimizing regulatory compliance risk.
About Stanford Financial Group
Stanford Group Company is a full-service financial planning and investment management firm serving private investors, corporations, governments and institutions worldwide. Headquartered in Houston, the company currently has branch offices in Atlanta, Austin, Baton Rouge, Boca Raton, Boston, Denver, Dallas/Ft. Worth, Longboat Key, Miami, Memphis, New York, San Diego, San Francisco and Washington, D.C., with plans for additional offices.
Stanford Group Company offers a strategic, planning-based approach to wealth management, a process custom-tailored to the requirements of each client. Sophisticated technologies support high levels of personalized service and communications applications. With a full spectrum of nonproprietary products, the company’s financial consultants act as unbiased advisors, implementing sound investment strategies for their clients.
Forward-Looking Statement
This press release contains forward-looking statements that are subject to risks and uncertainties, including statements regarding future financial and operating performance and projections regarding growth. These forward-looking statements are based on current expectations and speak only as of the date hereof. Actual results may differ materially from those set forth in the forward-looking statements, as a result of various factors and uncertainties, including whether Health Systems consolidation strategy will be successfully implemented, whether the services provided by Health Systems offer any protection against competitors with competing technologies, whether products under development can be successfully developed and commercialized, and whether unforeseen problems may impact the timing of planned product launches, and other risks and uncertainties discussed in Health Systems Form 10-K or Form 10-Q most recently filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. Health Systems disclaims any intent or obligation to update these forward-looking statements.
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