The company announced today it has received the second drawdown of $500,000 in 12% per annum short term debt financing. HealthWarehouse will use the additional funds for working capital and further expansion of its business model.
The terms of the loan agreement announced in December 2009 consisted of a debt facility with an initial drawdown of $515,000, with accrued interest and principal repayable in one year. The second drawdown of $500,000 was subject to the company becoming cash flow positive for any calendar month prior to December 15, 2010. With HealthWarehouse reaching a cash flow positive position in March 2010, the remaining $500,000 drawdown was released. The accrued interest and principal on the second drawdown is repayable in one year from its funding.
The president and CEO of HealthWarehouse, Lalit Dhadphate, said, “We continue to our business model bringing efficiency to the pharmaceutical supply chain and passing these efficiencies on to consumers. Reaching a cash flow positive position in March is a major milestone and shows the potential growth opportunity of our business model.”
In addition, HealthWarehouse today announced that its board of directors has approved a twenty-for-one reverse stock split to be effected at a future date, subject to stockholder approval. The company believes that by executing a reverse stock split, the higher share price will appeal to a broader audience of investors.