MedeFile International, Inc. (OTCBB:MDFI), a company specializing in electronic medical records management solutions, today announced that the company completed three separate private placement transactions totaling $1.95 million.
Two transactions closed on November 16, 2007 and January 22, 2008 yielded $1.79 million in gross cash proceeds from the private placement of 11.9 million restricted shares of common stock and warrants to purchase an aggregate of 7.2 million restricted shares of common stock.
Detailed terms and conditions of these transactions may be found at www.sec.gov or on MedeFile’s web site at www.medefile.com/corp/secfilings.asp. On January 28, 2008, the Company received an additional $160,000 in gross proceeds from the private placement of 1.1 million restricted shares of common stock and warrants to purchase an aggregate of 640 thousand restricted shares of common stock.
In addition, the company’s largest stockholder and primary creditor converted $2.1 million in debt into 14 million restricted shares of MedeFile’s common stock. This transaction reduced the company’s indebtedness to the stockholder from approximately $3.04 million to approximately $940,000. Further details related to this debt conversion may be found in the Form 8-K filed with the SEC on January 24, 2008.
These debt conversion and equity transactions were completed to materially strengthen the company’s balance sheet, and provide additional working capital to fund growth initiatives. This financing and debt conversion will allow the company to implement aggressive sales and marketing strategies to increase the number of subscribers to the MedeFile system.
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