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AUXILIO Completes $1.85 Million Financing
August 03, 2011
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Mission
Viejo, CA – August 3, 2011 – AUXILIO, Inc. (OTCBB: AUXO),
the nation’s pioneer and leading Managed Print Services (MPS) company for
health care, announced it closed a private offering of secured convertible
promissory notes and warrants for gross proceeds of $1.85 million on Friday, July
29, 2011.
“We are
pleased to complete this financing, which will help support our efforts to add new
customer contracts from our strong and growing sales pipeline,” stated Joseph
J. Flynn, president and CEO of AUXILIO, Inc. “Furthermore, we believe our organic sales efforts; channel
partnerships such as our expanded business development relationship with Sodexo;
unique vendor-neutral MPS solution; and proprietary industry benchmark data
will enable us to capture the significant and growing market opportunities in
the US Managed Print Services health care industry as a whole.”
Cambria
Capital, LLC acted as the placement agent for this offering.
Terms of the
Financing
The notes
mature July 29, 2014 and accrue interest at a rate of eight percent (8%) per
annum, compounded annually, and the interest on the outstanding balance of each
note is payable no later than thirty (30) days following the close of each
calendar quarter. The notes are
convertible into 1,850,000 shares of common stock. The warrants expire April 29, 2016 and are exercisable
to purchase up to 370,000 shares of common stock at a price of $1.50 per share.
The proceeds from the financing will be used for general working capital
purposes.
Additional
detail on the terms of the financing is included in the company’s Form 8-K
filed concurrently with this release.
About
AUXILIO, Inc.
AUXILIO,
Inc. is the pioneer of managed print services for the health care industry,
working exclusively with hospitals and hospital systems throughout the United
States. We are vendor independent
and provide intelligent solutions, a risk free program and guaranteed savings.
AUXILIO assumes all costs related to print business environments through
customized, streamlined and seamless integration of services at predictable
fixed rates that are unmatched in the industry. We work collaboratively to
assist our health care partners in the delivery of quality patient care. The service and solutions provided by
our on-site Centers of Excellence professional print strategy consultants
deliver unparalleled customer service across the industry. For more information
about AUXILIO, visit www.auxilioinc.com.
Forward
Looking Statements
This release
contains certain forward-looking statements relating to the business of
AUXILIO, Inc. that can be identified by the use of forward-looking terminology
such as “believes,” “expects,” “anticipates,”
“may” or similar expressions. Such forward-looking statements involve known and
unknown risks and uncertainties, including uncertainties relating to product/services
development, long and uncertain sales cycles, the ability to obtain or maintain
patent or other proprietary intellectual property protection, market
acceptance, future capital requirements, competition from other providers and
other factors that may cause actual results to be materially different from
those described herein as anticipated, believed, estimated or expected. Certain
of these risks and uncertainties are or will be described in greater detail in
our Form 10-K and Form 10-Q filings with the Securities and Exchange
Commission, which are available at http://www.sec.gov. AUXILIO, Inc. is under
no obligation (and expressly disclaims any such obligation) to update or alter
its forward-looking statements whether as a result of new information, future
events or otherwise.