NEW PR - Is this going to dilute this stock significantly????? Or will they be able to absorb it?|
March 17, 1998
Underwriting Proceeds Of $15 Million Released To DiagnostiCare
DC DIAGNOSTICARE INC ("DCE-TV;DCGOF-L")
- Underwriting Proceeds Of $15 Million Released To DiagnostiCare
Donald M. Cameron, VP Corporate Development and CFO of DC DiagnostiCare Inc. ("DiagnostiCare") is pleased to announce
that DiagnostiCare has been issued final receipts by the Ontario, Alberta and British Columbia Securities Commissions for a
prospectus qualifying the distribution of 10,897,436 common shares and 2,179,488 share purchase warrants on the exercise of
previously issued special warrants. An aggregate of 512,821 of the share purchase warrants are exercisable at $2.43 per share on
or before October 4, 1998 and the remaining 1,666,667 share purchase warrants are exercisable at $3.00 per share on or before
May 6, 1999. With the obtaining of final receipts for its prospectus, underwriting proceeds of $15,000,000 previously held in escrow
were released to DiagnostiCare. The funds were held in escrow pursuant to the terms of DiagnostiCare's Underwriting
Agreement with Levesque Beaubien Geoffrion Inc.
The prospectus qualifies securities issued by DiagnostiCare pursuant to three separate private placement transactions completed
since April of last year, for aggregate gross proceeds of $25,000,000. The funds will be utilized by DiagnostiCare to continue the
funding of its clinic acquisition program.
DiagnostiCare's business strategy is to capitalize on the fragmented medical imaging market in Canada by acquiring existing
diagnostic clinics. Through the implementation of cost-saving measures derived from economies of scale and professional
management, DiagnostiCare is able to capture increased returns on its investment in such clinics, while at the same time continuing
to provide efficient, professional services to its clients. Since going public in July 1996 DiagnostiCare has acquired 57 clinics and
has opened three additional specialty diagnostic imaging clinics.
Donald Little, DiagnostiCare's Chairman and Chief Executive Officer, commented "We are thrilled with the level of institutional
support that we have received in completing financings for $25 million over the past year. Our investors see the enormous potential
that comes from being the leading consolidator in an otherwise fragmented market. Our acquisition team now has sufficient
resources to aggressively pursue our nation-wide growth strategy."
TEL: (403) 413-9715 Chuck Moser, Director Investor Relations FAX: (403) 413-8916 DC DiagnostiCare Inc. Internet: