BERKELEY HEIGHTS, N.J., Sept. 28, 2012 (GLOBE NEWSWIRE) -- Authentidate Holding Corp. (Nasdaq:ADAT), a provider of secure web-based software applications and telehealth products and services for healthcare organizations, announced that it has completed a $3.3 million secured loan financing with certain accredited investors. In connection with the financing the company sold approximately $3.3 million of senior secured promissory notes and 2,558,139 warrants to the investors. The notes are not convertible into equity securities and no interest is due on the notes. The notes are due and payable on the earlier of October 31, 2013 or the completion of a subsequent financing as defined in the investor agreements. The warrants are exercisable for 54 months commencing six months from the issue date at an exercise price of $1.34 per share.
In connection with the financing, Authentidate entered into an agreement with the holders of a majority of the outstanding principal amount of the senior secured promissory notes issued in March 2012 (the "Prior Notes"), to extend the maturity date of such notes to October 31, 2013 and grant pari passu rights to the notes issued in the new financing. In consideration of this extension, we agreed to issue the holders of the Prior Notes warrants to purchase an aggregate of 2,197,674 shares of common stock with the same terms as the warrants issued in the new financing.
Ben Benjamin, Chief Executive Officer of Authentidate, stated, "We are pleased to have raised these additional funds which will be used primarily for general business and working capital purposes as well as to support the growth of our telehealth solution for remote patient monitoring. We are optimistic about the opportunity we have to increase our revenues in the coming quarters and these additional funds will assist us in growing sales and responding efficiently to new product orders. We believe that the participation of one of the company's board members in addition to our largest stockholder in this financing, alongside my own participation and that of our CFO William Marshall, expresses their confidence in the company's future and we are appreciative of their continued support. We look forward to sharing additional updates on the development of our business in our upcoming investor communications."
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