Comprehensive Healthcare Systems plans $3.5M private placement

Comprehensive Healthcare Systems Inc. (TSXV: CHS) (OTCQB: CMHSF) announced a non-brokered private placement of up to 7 million units at $0.50 per unit for gross proceeds of up to $3.5 million, according to a company statement.

Each unit consists of one common share and one-half warrant. The warrants allow holders to purchase one common share at $1.00 for three years after closing, with accelerated expiry if shares trade at $1.25 or higher for ten consecutive trading days. The company plans to use proceeds for general working capital.

The Calgary-based healthcare benefits administration software company also plans a debt settlement transaction to resolve up to $893,250 in U.S. dollar liabilities through issuing up to 2.47 million common shares at $0.50 per share.

Both transactions require customary closing conditions and approval from the TSX Venture Exchange. All securities issued will be subject to applicable hold periods under securities laws. The company may pay finder fees on the offering subject to exchange approval.

Comprehensive Healthcare Systems operates a software-as-a-service platform called Novus 360 Healthcare Welfare and Benefits Administration, which provides healthcare administrative software and services to self-funded employers, providers and labor unions.

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