The nation’s leading Managed Print Services (MPS) company for the healthcare industry, today announced that its $1,550,000 secured convertible promissory note balance outstanding as of June 30, 2014 has been converted to 1,550,000 shares of common stock. Following this transaction, the Company has minimal debt outstanding.
“We continue to be appreciative of the support our debt holders and shareholders have given us over the years. These conversions re-enforce this fact and will allow us to maintain a strong balance sheet as we continue to drive growth across our Managed Print Services and Information Security business lines,” said Joseph Flynn, Chief Executive Officer for CynergisTek.
CynergisTek closed a private offering of secured convertible promissory notes on July 29, 2011. The Company sold units consisting of a $5,000 secured convertible note (“the Note”) and a warrant to purchase 1,000 shares of common stock at an exercise price of $1.50 per share. The Notes matured on July 29, 2014; accrued interest at a rate of 8% per annum, compounded annually, and were convertible into shares of common stock at a conversion price of $1.00 per share. The warrants expire April 29, 2016 and are exercisable to purchase up to 370,000 shares of CynergisTek’s common stock. Total gross proceeds from the offering was $1,850,000.
The holders of the Notes, which includes several members of the Board at the time of the initial offering, elected to convert all of the unpaid principal into 1,850,000 shares of common stock during the term of the agreement with the bulk being converted in July, 2014. The warrants remain outstanding until their exercise or expiration.
About CynergisTek, Inc.
CynergisTek is the leading provider of Managed Print Services for the healthcare industry. A true Management Services company, CynergisTek takes full responsibility for healthcare customers’ onsite print environment. Hospitals and health systems benefit from infrastructure and process improvements that immediately reduce the cost of print/digital systems, provide sustainable increases in employee productivity and enables hospital staff to better focus on providing patient care. CynergisTek also provides a healthcare IT advisory and professional services, including information security, risk management and compliance, using the same focused approach on cost savings and operational efficiencies as their core managed print services business.
Founded in 2004, CynergisTek serves a national portfolio of over 100 hospital campuses and manages in excess of 1.3 billion documents annually from over 59,000 devices supporting more than 250,000 caregivers. CynergisTek’s business model is vendor neutral, provides full-time, on-site customer service and technical experts and is exclusive to the healthcare industry.
For more information about CynergisTek, visit http://www.CynergisTekinc.com.
Forward Looking Statements
This release contains certain forward-looking statements relating to the business of CynergisTek, Inc. that can be identified by the use of forward-looking terminology such as “believes,” “expects,” “anticipates,” “may” or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including uncertainties relating to product/services development, long and uncertain sales cycles, the ability to obtain or maintain patent or other proprietary intellectual property protection, market acceptance, future capital requirements, competition from other providers, the ability of our vendors to continue supplying the company with equipment, parts, supplies and services at comparable terms and prices and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our Form 10-K and Form 10-Q filings with the Securities and Exchange Commission, which are available at http://www.sec.gov. CynergisTek, Inc. is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.