CareView Communications Sells 2.5 Million Shares in Private Placement; Approves Proposal For Debt Restructure
LEWISVILLE, Texas–(BUSINESS WIRE)–CareView Communications, Inc. (“CareView” or the “Company”) (OTCQB: CRVW), an information technology provider to the healthcare industry, today announced the closing of a private placement for 2.5 million shares of the Company’s common stock at a price per share of $0.10. All shares were purchased by members of the Company’s Board of Directors (the “Board”).
In addition, with the Company’s financial statements for the period ended June 30, 2022 indicating a stockholders’ deficit of over $117 million, the Board believes this deficit is a significant negative factor for the Company to secure sales of the Company’s products to new and existing customers, which thereby threatens the ongoing operations of the Company.
The Board determined, in order to mitigate this negative perception of the Company, that it was in the best interest of the Company to propose a conversion of debt (the “Debt”) with certain lenders (the “Lenders”), so that the Company can remove the competitive financial disadvantage it is now experiencing in the marketplace, and to win more business. The Board further authorized the Company to retain Value Incorporated to provide a fairness opinion (the “Fairness Opinion”) that the price of $0.10 per share is a conversion price that is fair to all of the Company’s shareholders.
Subject to a Fairness Opinion, the Board approved a proposal for a Debt restructure, which the Company is presenting to its debtholders. The proposal includes (i) the conversion of approximately $40 million in long-term debt into shares of the Company’s common stock at a price per share of $0.10, (ii) the cancelation by the Company and the forfeiture by the debtholders of the additional accrued interest of approximately $48.5 million, and (iii) the cancelation by the Company and the forfeiture by the debtholders of warrants for the purchase of approximately 15.5 million additional shares of the Company’s common stock.
Steven G. Johnson, CareView’s Chief Executive Officer, stated, “We are grateful that our Board is so supportive of our Company and for their recent efforts to make further investments. We have several substantial new contracts that we anticipate closing in Q4 2022 and Q1 2023.”
About CareView Communications, Inc.
As a leader in turnkey patient video monitoring solutions, CareView is redefining the standard of patient safety in hospitals and healthcare facilities across the country. For over a decade, CareView has relentlessly pursued innovative ways to increase patient protection, providing next-generation solutions that lower operational costs and foster a culture of safety among patients, staff, and hospital leadership. With installations in more than 150 hospitals, CareView has proven that its innovative technology is creating a culture of patient safety where patient falls have decreased by 80% with sitter costs reduced by more than 65%. Anchored by the CareView Patient Safety System, this modular, scalable solution delivers flexible configurations to fit any facility while significantly increasing patient safety and operational savings. All configurations feature HD cameras, high-fidelity 2-way audio/video, LCD displays for the ultimate in capability, flexibility, and affordability. Corporate offices are located at 405 State Highway 121 Bypass, Suite B-240, Lewisville, TX 75067. More information about the Company and its products and services is available on the Company’s website at www.care-view.com.
Forward Looking Statements
Statements made in this release that are not statements of historical or current facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.
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Steven G. Johnson
President and Chief Executive Officer
CareView Communications, Inc.