NORTH ANDOVER, Mass., April 11 /PRNewswire-FirstCall/ -- Andover Medical, Inc. (OTC Bulletin Board: ADOV - News), a single source provider of orthopedic, podiatric and urological durable medical equipment (“DME”) and incontinence treatment solutions, announced today that the Company closed a $5.6 million private financing on March 29, 2007.
Gross proceeds from the private offering totaled $5,612,492. Participating investors’ purchased in the aggregate 112 Units of the Company’s securities, representing principal amount of 6% Series A Convertible Preferred Stock at $50,000 per Unit. Each Unit consists of: $50,000 face value of 50 shares of Preferred Stock, convertible at $.35 per share into 142,850 shares of Common Stock; Class A Warrants exercisable for five years at $.35 per share to purchase 142,850 shares of Common Stock and Class B Warrants exercisable for five years at $.35 per share to purchase 142,850 shares of Common Stock. Complete terms of the offering can be found in the Company’s Form 8-K filed with the SEC on April 6, 2007 and available at http://www.sec.gov.
Edwin Reilly, Chief Executive Officer of Andover Medical, Inc. said, “I believe Andover Medical is now adequately capitalized to pursue our near term business objectives. These proceeds will be used - in part - to acquire and integrate new companies into a nationwide subsidiary network, which will assist practitioners in providing quality care and services to their patients. As we continue to expand our business through accretive acquisitions and strategic business partnerships, our momentum will continue to accelerate, and I believe this in turn will positively impact long term shareholder value.”
The aggregate net proceeds of the Offering will be used for working capital, including pending acquisitions. All of the underlying Common Stock will be included in a registration statement filed with the Securities and Exchange Commission within 30 days following the final closing date of the Offering.
About Andover Medical, Inc.: Andover Medical, Inc. (AMI) is building a single source provider of orthopedic, podiatric and urological durable medical equipment (“DME”) and incontinence treatment solutions. The Company intends to establish a nationwide subsidiary network and plans to offer practitioners the largest selection of competitively priced brand-name durable medical equipment, and urodynamic diagnostic and treatment products. For more information, please call (978) 557-1001 or visit http://www.andovermedical.com.
Forward-Looking Statements: This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release are forward-looking statements. These forward looking statements include Andover’s intent to establish a nationwide subsidiary network and plans to offer physicians the largest selection of competitively priced brand-name durable medical equipment, and urodynamic diagnostic and treatment products. All forward-looking statements speak only as of the date of this press release. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, achievements or transactions of AMI and its affiliates to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors which, could impact the Company and the forward-looking statements contained herein are included in the Company’s filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Source: Andover Medical, Inc.
