MILWAUKEE–(BUSINESS WIRE)– Merge Healthcare (NASDAQ: MRGE) (“Merge”) announced today that it has entered into definitive agreements to raise up to $27.3 million in gross proceeds, before deducting placement agent fees and other estimated offering expenses, in a registered direct offering with select institutional investors. The transaction is expected to close on November 18, 2009, subject to customary closing conditions. The offering consists of the sale and issuance of up to 9,084,032 shares of the Company’s common stock at a purchase price of $3.00 per share.
Merge intends to use the net proceeds from this offering to prepay in full its senior secured note held by Merrick RIS, L.L.C. due June 2010 (the “Note”). The remaining net proceeds from this offering will be used for general corporate purposes, including working capital. William Blair & Company, L.L.C. acted as the lead placement agent for the offering. Craig-Hallum Capital Group LLC and Robert W. Baird & Co. Incorporated acted as co-placement agents for the offering.
A shelf registration statement, as amended, relating to these securities was previously filed on September 3, 2009 and declared effective by the Securities and Exchange Commission (SEC No. 333-161691). A prospectus supplement related to the offering will be filed with the Securities and Exchange Commission. This press release does not constitute an offer to sell or the solicitation of offers to buy any security and shall not constitute an offer, solicitation, or sale of any security in any jurisdiction in which such offer, solicitation, or sale would be unlawful. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A copy of the prospectus supplement and accompanying base prospectus can be obtained at the Securities and Exchange Commission’s website http://www.sec.gov or via written request to Merge Healthcare Incorporated, 6737 W. Washington Street, Suite 2250, Milwaukee, Wisconsin 53214, Attn: General Counsel. Alternatively, the issuer will arrange to send you these documents if you request them by calling 414.977.4067.
Merge Healthcare develops software solutions that automate healthcare data and diagnostic workflow to create a more comprehensive electronic record of the patient experience. Merge products, ranging from standards-based development toolkits to fully integrated clinical applications, have been used by healthcare providers worldwide for over 20 years. Additional information can be found at www.merge.com.
Source: Merge Press Release
