Emeryville, California. - June 13, 2001 - HealthCentral (Nasdaq: HCEN), a leading provider of healthcare e-commerce and content, announced that it has completed its debt-financing with certain institutional and accredited investors, bringing the total amount raised under this debt facility to $3.5 million.
"The additional debt financing strengthens our cash position and our ongoing efforts throughout the Company. Combined with our cost saving efforts, we are pleased with our progress to date," said Fred Toney, President and CEO. "This debt financing is fully funded at the time of closing and has no variable components related to the amount of warrants or their exercise price."
Under the terms of the debt financing agreements, the principal amount borrowed is due on December 31, 2003, with an annual interest rate of 8.5%. The debt is secured by the Company`s inventory and accounts receivable. Each lender received a fixed number of warrants to purchase shares of common stock equal to five warrants for each dollar loaned to the Company. The warrants are immediately exercisable for a period of five years and carry a fixed exercise price equal to the fair market value of the Company`s common stock as of the date of issuance.
HealthCentral (Nasdaq: HCEN) is a leading provider of healthcare e-commerce to consumers through WebRxSM, a network of sites representing the consolidation of Vitamins.com, HealthCentral.com, RxList.com and others. Its e-commerce site, WebRxSM (www.webrx.com), features more than 25,000 products. WebRxSM features one of the largest on-line selections of vitamins, a Vision Center and a Comfort Living department (www.comfortliving.com) with a broad range of products including maternity and baby care, ergonomic chairs, water purifiers and an extensive line of allergy control products. HealthCentral.com (www.healthcentral.com) provides health-related information and commentary by Dr. Dean Edell, MD and other experts. RxList.com (www.rxlist.com) provides both patient-focused and professional-focused prescription drug information monographs.
HealthCentral Forward Looking Statements
Except for historical information, the statements in this news release are forward-looking statements, involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, the possible delisting of the Company`s stock from the Nasdaq market, the Company`s ability to successfully implement its operational plan, including proposed asset sales, the Company`s limited operating history and need to generate revenues, the Company`s need to raise additional cash, the substantial competition in the e-health market, possible liability related to product or content on or accessed through the Company`s web sites, the need to build a brand name quickly, the effect of substantial and changing government regulation, possible systems interruptions, a failure to integrate acquisitions or manage resources, and a failure to retain key employees. Further information regarding these and other risks is included in HealthCentral.com`s Quarterly Report on Form 10-Q for the quarter ended March 31, 2001, Annual Report on Form 10-K for the year ended December 31, 2000 and other documents filed with the SEC.
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