CRH Medical Announces Brokered Private Placement
Investor Contact: Dean Linden 604.633.1440
VANCOUVER, BC, March 17, 2009 ‘ CRH Medical Corporation (CRM:TSX-V) (the ‘Company’) announced today that it has agreed to a private placement (the ‘Offering’) with Canaccord Capital Corporation (the ‘Agent’) whereby the Agent will act as the Company’s agent on a ‘commercially reasonable efforts’ basis to complete a private placement of up to 2,564,103 units (the ‘Units’) at $0.78 per unit, for aggregate gross proceeds of up to approximately $2 million.
Each Unit is comprised of one common share in the capital of the Company (a ‘Common Share’) and one Common Share purchase warrant (a ‘Warrant’). Each Warrant will entitle the holder thereof to purchase one Common Share for a period of three years from the closing date of the Offering at an exercise price of $1.00 per Common Share except that if over a period of 20 consecutive trading days between the date that is 4 months following the closing date and the expiry of the Warrant, the daily volume weighted average trading price of the Common Shares exceeds $2.50 on each of those 20 consecutive days, the Company may give notice in writing to the Warrant holders that the Warrants shall expire at 4:00 p.m. (Vancouver time) on the 20th day following the giving of such notice unless exercised by the holders prior to such date.
Closing of the Offering is subject to the satisfaction of customary closing conditions including the receipt of necessary regulatory approvals.
The Company has also granted the Agent an over-allotment option to increase the offering by up to 384,616 Units, for additional gross proceeds of up to approximately $300,000, exercisable 48 hours prior to closing.
Net proceeds from the Offering will be used to fund the training and adoption by physicians in the US of the Company’s proprietary CRH O’Regan Hemorrhoid Banding Technology and other corporate purposes.
The securities to be offered have not been and will not be registered under the United States Securities Act of 1933, as amended (‘U.S. Securities Act’), and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act.’ This press release shall not constitute an offer to sell or the solicitation of an offer to buy such securities in the United States or in any other jurisdiction where such offer is unlawful.
About CRH Medical Corporation:
CRH Medical Corporation specializes in the treatment of hemorrhoids utilizing its proven treatment protocol and patented proprietary technology. CRH’s single use, disposable, hemorrhoid technology is safe and highly effective in treating hemorrhoid grades I ‘ IV. CRH Medical employs two commercialization strategies: First, it operates Centers for Colorectal Health facilities in the United States specializing in the treatment of hemorrhoids and fissures, and colon cancer screening. In addition CRH distributes its hemorrhoid banding technology, treatment protocols, operational and marketing expertise as a complete, “turn key” package directly to its partner physicians. The Company’s goal is to establish the CRH hemorrhoid technology as the standard for hemorrhoid treatment.
The information in this news release contains so-called ‘forward-looking’ statements. These include, but are not limited to, statements regarding: CRH Medical expectations, beliefs, intentions or strategies for the future and expectations as to the use of proceeds from the Offering and Non-Brokered Offering and the results of its future operations.’ In certain cases, forward looking statements can be identified by the use of words or phrases such as ‘anticipate’, ‘expect’, ‘intend’, ‘plan’, ‘will’, ‘we believe’, ‘CRH Medical believes’, ‘management believes’ and similar language. All forward-looking statements are based on CRH Medical current expectations, and are subject to risks and uncertainties, assumptions made, and other factors which may cause the actual results, performance or achievement of CRH Medical to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. Such factors include market conditions, global political uncertainties, investor demand and the timing and final terms of the Offering. CRH Medical disclaims any intention or obligation to update any forward-looking statement even if new information becomes available as a result of future events or for any other reason.
For further information call Dean Linden, Corporate Communications, CRH Medical Corporation at 604.633.1440 or firstname.lastname@example.org. Additional information may also be found by visiting the Company’s website at www.crhmedcorp.com or the SEDAR website at www.sedar.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.