Alegro Health Corp.: Private Placement Financing.TORONTO -- Alegro Health Corp. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:AGO) is pleased to announce that PowerOne Capital Markets Limited has agreed to act as agent for a private placement under which Alegro will issue a maximum of 8 million units at a price of $0.25 per unit for total proceeds to Alegro of $2 million. Each unit will consist of one common share and one half of one common share purchase warrant. Each whole purchase warrant will entitle en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: its holder to purchase an additional common share for a period of two years following the closing of the offering at a price of $0.30 per share. Subject to regulatory approval, Alegro plans to loan the majority of the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the private placement to a shareholder of a private Ontario corporation ("Ontco") that owns and operates a healthcare facility in Ontario to fund his purchase of the remaining issued shares of Ontco. On completion of the loan transaction and share purchase, Ontco intends to enter into a 25 year management and operating agreement An operating agreement is an agreement among limited liability company ("LLC") members governing the LLC's business, and Member's financial and management rights and duties. No state requires an LLC to have an Operating agreement. with Alegro under which Alegro will manage and control all of the day-to-day operations of Ontco's healthcare facility. The remainder of the proceeds of the private placement will be used by Alegro to fund other opportunities. The closing of the private placement is expected to occur on or about July 21, 2004 and is subject to regulatory approval. About Alegro Alegro Health Corp. is a leading fully integrated health care integrated health care, n healthcare services combining the best of conventional and complementary health care. service provider. The Company's common shares are listed for trading on the TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. under the trading symbol Trading symbol See: Ticker symbol "AGO". About PowerOne PowerOne Capital Markets Limited is a Toronto-based private merchant bank committed to financing and aiding emerging junior and small-cap companies. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Alegro Health Corp. (TSX VENTURE:AGO) |
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