Healthcare Providers, Inc.(fka HPRD)

[petermic]

July 31 Financing


On July 31, 2007, to obtain funding for working capital, Healthcare Providers Direct, Inc. (the “Company”) entered into a subscription agreement (the “Agreement”) with accredited investors (the “Investor”) for the sale of $500,000 9% Senior Secured Convertible Debentures (the “Debentures”). The Debentures bear interest at 9% and mature thirty-six months from the date of issuance. The Debentures will be convertible at the option of the holder at any time into shares of common stock, at an initial conversion price equal to $0.25 (“Initial Conversion Price”). In connection with the Agreement, each Investor received a warrant to purchase such number of shares of common stock equal to their subscription amount divided by the Initial Conversion Price (“Warrants”). Each Warrant is exercisable for a period of five years from the date of issuance at an initial exercise price of $0.50.