CareView Communications, Inc. ("CareView" or the "Company") (OTCQB: CRVW), an information technology provider to the healthcare industry, announced today that it entered into definitive Securities Purchase Agreements with accredited investors to sell 6,220,000 shares of the Company's common stock in a private placement for aggregate gross proceeds to the Company of approximately $3.1 million. In conjunction with the sale of shares, the Company will issue warrants to purchase an additional 2,500,000 shares of the Company's common stock at an exercise price of $0.60 per share. In support of the financing, all eligible members of the Company’s Board of Directors participated in the purchase of shares under the private placement; however, they declined to receive the accompanying warrants in an effort to minimize dilution to existing shareholders. Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE MKT:LTS), served as the Company's exclusive placement agent. The net proceeds from the private placement will be used for ongoing operations.
Upon the closing of this private placement, the Company will have approximately $8 million in cash and $19.5 million available through a revolving line of credit. These funds will enable the Company to more quickly advance the anticipated rapid expansion of hospital deployments in the near future.
The private placement, which is expected to close on or about April 1, 2013, is subject to the satisfaction of certain customary closing conditions contained in the securities purchase agreements. The securities to be issued in this private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from registration requirements of the Securities Act and such applicable state and securities laws. The Company has agreed to file a registration statement with the Securities and Exchange Commission within 30 days of closing to register for resale the shares of common stock to be issued in the private placement.