Hooper Holmes Announces Successful Completion of Rights Offering
January 27 2016 - 8:00AM
Business Wire
- Company Raises $ 3.5 Million of Gross
Proceeds -
- HH Regains NYSE MKT Compliance -
Hooper Holmes, Inc. (NYSE MKT: HH) today announced the
successful completion of its previously disclosed rights offering,
which expired at 4:00 p.m., Central Time, on January 25, 2016.
“We are encouraged by the success of our rights offering and the
support of our shareholder base – especially given the backdrop of
a very challenging capital market environment,” stated Henry
Dubois, President and CEO of Hooper Holmes. “Over the past several
years we have been focusing on strategies to improve our growth
profile. We sold a number of underperforming businesses, refocused
our operation on the Health & Wellness market, adjusted our
cost structure, and made a significant acquisition. Raising this
new capital of over $3.5 million provides additional liquidity
enabling us to continue growing our business and improving our
capital structure.”
Mr. Dubois continued, “We have created an exciting business
model that takes advantage of a large and compelling Health &
Wellness market, and management and the board remain committed to
building a $100 million revenue company in the next three to four
years. Our expectations for 2016 demonstrate the company is on the
right path as we believe we will have annual revenue in excess of
$42 million with positive EBITDA and operating cash flow in 2016. I
appreciate all our shareholders’ patience through this multi-year
turnaround process and look forward to updating investors on our
successes as the year continues.”
The company received subscriptions for a total of 12,672,600
common shares under the basic subscription privilege and
subscriptions for a further 26,354,239 common shares under the
over-subscription privilege, representing a total of 39,026,839
common shares. The rights offering raised net proceeds of
approximately $3.25 million (after deducting estimated expenses
relating to the rights offering). The net proceeds will be used for
general corporate purposes and to repay principal repayments that
will occur in 2016 as a result of the company’s indebtedness with
SWK Holdings.
The company expects American Stock Transfer & Trust Company,
LLC, the transfer agent for the rights offering, to begin
distributing the shares to subscribers this week. Upon completion
of that process, a total of 117,052,837 common shares will be
outstanding.
In addition, the NYSE MKT accepted the company’s plan to address
its shareholders’ equity requirement, which included this rights
offering. Pursuant to the accepted plan, if the company is able to
execute this plan, then it will have satisfied the minimum
shareholders’ equity required for continued listing meeting its
obligations under the NYSE MKT’s notice of December 9, 2015.
About Hooper Holmes
Hooper Holmes mobilizes a national network of health
professionals to provide on-site health screenings, laboratory
testing, risk assessment and sample collection services to wellness
and disease management companies, employers and brokers, government
organizations and academic institutions nationwide. Under the
Accountable Health Solutions brand, the Company combines smart
technology, healthcare and behavior change expertise to offer
comprehensive health and wellness programs that improve health,
increase efficiencies and reduce healthcare delivery costs.
This press release contains “forward-looking” statements, as
such term is defined in the Private Securities Litigation Reform
Act of 1995. These forward-looking statements are based on the
Company’s current expectations and beliefs and are subject to a
number of risks, uncertainties and assumptions. Among the important
factors that could cause actual results to differ materially from
those expressed in, or implied by, these forward-looking statements
are our ability to realize the expected benefits from this
acquisition and our strategic alliance with Clinical Reference
Laboratory; our ability to successfully implement our business
strategy and integrate Accountable Health Solutions’ business with
ours; our ability to retain and grow our customer base; our ability
to recognize operational efficiencies and reduce costs; uncertainty
as to our working capital requirements over the next 12 to 24
months; our ability to maintain compliance with the financial
covenant in our credit facility and the financing for this
acquisition; our ability to fulfill the conditions of our plan to
comply with the NYSE MKT’s minimum requirement for shareholders’
equity; and the rate of growth in the Health and Wellness market.
Additional information about these and other factors that could
affect the Company’s business is set forth in the Company’s annual
report on Form 10-K for the year ended December 31, 2014, filed
with the Securities and Exchange Commission on March 31, 2015. The
Company undertakes no obligation to update or release any revisions
to these forward-looking statements to reflect events or
circumstances after the date of this press release to reflect the
occurrence of unanticipated events, except as required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20160127005630/en/
Hooper Holmes, Inc.Henry E. Dubois, President and CEO, (913)
764-1045orInvestors:S.M. Berger & CompanyAndrew Berger, (216)
464-6400