SC Worx Corp. (WORX) Announces $5 Million Private Placement with Institutional Investor
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SCWorx (NASDAQ: WORX), announced that it has entered into an agreement to purchase common stock (the “Purchase Agreement”) with an institutional investor (the “Institutional Investor” or “Investor”). Under the terms and subject to the conditions of the purchase agreement, SCWorx will have the right, but not the obligation, to issue and sell to the investor up to $5 million of common stock of SCWorx from time to time over a period of approximately 24-months of the purchase contract.
Tim Hannibal, President and CEO of SCWorx, said, “Our agreement with the institutional investor is another element of SCWorx’s plan to drive the company forward and achieve key business objectives that contribute to our growth strategy. growth “.
Hannibal continued, “We believe this commitment from the institutional investor demonstrates investor confidence in SCWorx, including our business model that leverages the SCWorx data management SaaS solution to help hospitals achieve their chain goals. supply chain and their cost reduction objectives.
Under the purchase agreement, SCWorx has the right, but not the obligation, to sell to the investor up to $5 million of its common stock, subject to certain conditions. SCWorx may direct the investor to purchase a number of shares not to exceed an amount determined by SCWorx’s trading volume and share price. Purchase notices may be issued during the period commencing after certain customary conditions are satisfied, including the filing and securing of the effectiveness of a registration statement (the “Registration Statement”) with the United States Securities and Exchange Commission (the “SEC”) with respect to the resale of the shares issued under the purchase agreement, which is expected between mid and late August 2022.
SCWorx expects to use the net proceeds from the financing over time for working capital and general corporate purposes to support future growth.
In consideration for the Institutional Investor’s commitment to purchase shares of common stock of SCWorx on the terms and conditions set forth in the Purchase Agreement, SCWorx will issue 277,778 shares of common stock to the investor.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, and there will be no sale of any of the securities mentioned in this press release in any state in which such an offer , solicitation or sale would be unlawful. prior to registration or qualification under the securities laws of such state. Any offering of SCWorx common stock under the resale registration statement referred to in this press release will be made only by way of prospectus.
About SC Worx Corp.
SCWorx has created an advanced virtualized item data warehouse using machine learning and artificial intelligence to deliver a suite of software-as-a-service solutions to healthcare providers. The value proposition for customers revolves around the full integration of all solution modules with the enterprise data platform for cost savings, operational efficiency, and benchmarking and reporting accurate. Modules in the solution include Virtual Item Master, Data Cleansing and Normalization, Contract Management and Request for Pricing (RFP) Module, Automated Rebate Management Module, Data Interoperability Module (EMR , MMIS, finance), automated item addition portal, virtual general ledger and data analysis module. SCWorx creates a single source of information for healthcare provider data governance and analytics requirements.
This press release contains “forward-looking statements” that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included in this press release regarding strategy, future operations, future contract renewals and terminations, future financial condition, outlook, plans and objectives of management are forward-looking statements. You can identify many (but not all) of these forward-looking statements by searching for words such as “assumes”, “approaches”, “believes”, “expects”, “anticipates”, “estimates”, “projects “, ” look for “. ,” “intends”, “plans”, “could”, “will”, “may” or other similar expressions. You should not place undue reliance on these forward-looking statements. These statements are based on the current expectations of management and involve risks and uncertainties. Actual results and performance could differ materially from those projected in the forward-looking statements due to numerous factors, including, without limitation, economic disruptions affecting our customers, unplanned contract terminations, securing future contracts and orders, future product supply, supply disruptions, containing costs, the ability to project future cash usage and necessary reserves for future liabilities contingent liabilities and business operations, the availability of sufficient company resources to achieve its business objectives and operational requirements and other important factors which are detailed in documents filed with the securities and exchange commission made from time to time by SCWorx, including its annual report on Form 10-K for the fiscal year ended December 31, 2021 , its quarterly reports on Form 10-Q and its current reports on Form 8-K. Matters described in forward-looking statements may also be affected by other known and unknown risks, trends, uncertainties and factors, many of which are beyond the company’s ability to control or predict. SCWorx undertakes no obligation to publicly release any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events.
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Source: SCWorx Corp.
Posted July the 5th, 2022
Source: SCWorx Corp.