Graymark Raises $3 Million in Private Placement Transaction
OKLAHOMA CITY, May 3, 2011 /PRNewswire/ -- Graymark Healthcare, Inc. (NASDAQ: GRMH), the nation's second largest provider of diagnostic sleep services and an innovator in comprehensive care for obstructive sleep apnea (OSA), entered into subscription agreements with insiders and existing accredited investors to sell $3 million of newly issued shares of its common stock and warrants in a private placement.
Under the terms of the transaction, Graymark will sell 5,172,411 million shares for $0.58 per share, a 29% premium to Friday's consolidated closing bid price of $0.45 per share. The purchasers will also receive warrants to purchase up to an aggregate of approximately 5,172,411 million shares of common stock at an exercise price of $0.45 per share. The warrants may be exercised beginning 6 months after the closing date and will expire in 3 years. The closing of the transaction is expected to take place on or about May 6, 2011, subject to the satisfaction of customary closing conditions.
No investment banking or advisory fees were paid by the company.
The company intends to use the proceeds of this private placement to pay down its short-term debt obligations with Arvest Bank as well as for general corporate purposes.
