NORTH ANDOVER, Mass., May 24 /PRNewswire-FirstCall/ -- Andover Medical, Inc. , a single source provider of orthopedic, podiatric and urological durable medical equipment (“DME”) and incontinence treatment solutions, announced today that the Company closed a $1.7 million follow-on private financing on May 3, 2007. Complete terms of the offering can be found in the Company’s Form 8-K filed with the SEC on May 21, 2007 and available at http://www.sec.gov.
Gross proceeds from the private offering totaled $1,700,000. Participating investors’ purchased in the aggregate 34 Units of the Company’s securities, representing principal amount of 6% Series B Convertible Preferred Stock at $50,000 per Unit. Each Unit consists of: $50,000 face value of 50 shares of Series B Convertible Preferred Stock, convertible at $.35 per share into 142,850 shares of Common Stock; Class A Warrants exercisable for five years at $.35 per share to purchase 142,850 shares of Common Stock and Class B Warrants exercisable for five years at $.35 per share to purchase 142,850 shares of Common Stock.
Edwin Reilly, Chief Executive Officer of Andover Medical, Inc. said, “This additional round of financing of $1.7 Million was made available to investors after closing our recently announced $5.6 Million equity financing in March of this year. We have demonstrated a continued ability to access the capital markets through strong investor demand for our newly issued securities. This indicates that our investors have confidence in our business strategy and share our vision for the development of Andover’s unified network of DME providers. Now as a funded company, Andover is more favorably positioned to execute as we build-out and realize the synergies from the creation of this national network.”
The aggregate net proceeds of the financing will be used for working capital, including pending acquisitions. All of the underlying Common Stock will be included in a registration statement to be filed with the Securities and Exchange Commission.
About Andover Medical, Inc.:
Andover Medical, Inc. (AMI) is building a single source provider of orthopedic, podiatric and urological durable medical equipment (“DME”) and incontinence treatment solutions. The Company intends to establish a nationwide subsidiary network and plans to offer practitioners the largest selection of competitively priced brand-name durable medical equipment, and urodynamic diagnostic and treatment products. For more information, please call (978) 557-1001 or visit http://www.andovermedical.com.
Forward-Looking Statements:
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release are forward-looking statements. These forward looking statements include: Andover’s intent to establish a nationwide subsidiary network and plans to offer physicians the largest selection of competitively priced brand-name products; and Andover is more favorably positioned to execute as we build-out and realize the synergies from the creation of this national network.
All forward-looking statements speak only as of the date of this press release. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, achievements or transactions of AMI and its affiliates to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors which, could impact the Company and the forward-looking statements contained herein are included in the Company’s filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
At the Company: Andover Medical, Inc. Edwin Reilly - CEO 978-557-1001 (x11) Investor Contact: Erin Hegarty Equity Performance Group P: 617.723.2225 Erin@EquityPerfGP.comwww.equityperformancegroup.com
Andover Medical, Inc.
CONTACT: Edwin Reilly, CEO of Andover Medical, Inc., +1-978-557-1001, ext11.; or Investors, Erin Hegarty of Equity Performance Group,+1-617-723-2225, Erin@EquityPerfGP.com, for Andover Medical, Inc.
Web site: http://www.andovermedical.com//
