HOUSTON, June 29, 2012 /PRNewswire/ -- Spine Pain Management, Inc. (OTC QB:SPIN), a medical services and technology company, today announced that it closed on the non-brokered private placement of a 12% Convertible Promissory Note generating proceeds of $500,000. The promissory note provides for quarterly payments of interest only with a final balloon payment of principal and interest due on March 27, 2014. Up to half the principal amount of the promissory note may be converted after 12 months, and the remaining balance after 15 months, from the date of issue at $1.50 per share. The note holder also received two-year warrants that are exercisable into a total of 69,445 shares of the company's common stock at $1.80 per share.
The company anticipates that proceeds from the private placement will be used to add and operate an additional two affiliated diagnostic centers scheduled to open during the third quarter 2012 and for working capital. The company currently has six affiliate centers located in Texas and Florida, the first of which was opened in September 2009. Since inception, Spine Pain Management has managed over 3,900 diagnostic procedures.
About Spine Pain Management, Inc:
We are a medical services and technology company facilitating diagnostic services for patients who have sustained spine injuries resulting from traumatic accidents. We deliver turnkey solutions to spine surgeons, orthopedic surgeons and other healthcare providers that provide necessary and appropriate treatment of musculo-skeletal spine injuries resulting from automobile and work-related accidents. Our care management services help reduce the financial burden on healthcare providers that provide patients with early-stage diagnostic testing and non-invasive surgical care, preventing many patients from being unnecessarily delayed or inhibited from obtaining needed treatment. We believe that our services and technology bring strong transparency and impartiality to all parties involved in the settlement of patient cases.
Additional information about the company, along with a video can be found at its website at www.spinepaininc.com.
Forward-Looking Statements: This press release includes forward-looking statements as determined by the U.S. Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical facts, included in this press release that address activities, events, or developments that the company believes or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations, healthcare services demands, changes in healthcare practices, government regulation, and other factors over which the company has little or no control. The company does not intend (and is not obligated) to update publicly any forward-looking statements. The contents of this press release should be considered in conjunction with the warnings and cautionary statements contained in the company's recent filings with the SEC.
Yvonne L. Zappulla
Grannus Financial Advisors, Inc.
Chief Financial Officer
Spine Pain Management, Inc.
SOURCE Spine Pain Management, Inc.