BERKELEY HEIGHTS, N.J., Nov. 12, 2013 (GLOBE NEWSWIRE) -- Authentidate Holding Corp. (Nasdaq:ADAT), a provider of secure web-based software applications and telehealth products and services for healthcare organizations, today announced that it has entered into definitive purchase agreements with certain accredited and/or institutional investors to purchase an aggregate of $2,465,000 of the company's common stock and warrants in a private placement. Closing of the transaction is expected to occur by November 13, 2013, subject to the satisfaction of customary conditions. The company expects to receive $2.4 million in net proceeds from the offering and intends to use the net proceeds for general corporate purposes and working capital to support the company's anticipated growth.
Ben Benjamin, Chief Executive Officer of Authentidate, stated "We are executing our business plan well, we believe we have significant opportunities for growth with our existing customers and we are pursuing a growing pipeline of RFPs and other opportunities for our solutions. These additional funds will be used primarily for general corporate and working capital purposes and provide us with additional financial flexibility to support the growth of our telehealth solutions for remote patient monitoring. We are pleased to be able to bring in additional working capital financing on terms that we find acceptable and, by improving our balance sheet at this juncture, we believe that we will be better positioned to more aggressively grow revenues, establish a greater presence in the marketplace and respond to new product orders and opportunities as they arise."
Under the terms of the offering, the company will sell an aggregate of 2,347,625 shares of common stock and warrants to purchase an additional 774,716 shares of common stock at a unit price of $1.05 per share and warrant. The warrants will be exercisable for 54 months commencing six months from the closing date at an exercise price of $1.38 per share. The company also entered into a registration rights agreement with the investors and granted them demand and piggyback registration rights covering the resale of the common stock and the shares issuable upon exercise of the warrants. The demand registration rights will be exercisable commencing on the one-year anniversary of the closing.