Vitalhub announces HI Next, B Sharp acquisitions and $10M financing

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By Ted Liu

Vitalhib Corp. (TSX-V: VHI) has entered into non-binding letters of intent (LOI) to acquire H.I. Next Inc. and B Sharp Technologies Inc. and intends to close a brokered private placement for up to $10 million in gross proceeds.

On February 23, 2017, Vitalhub agreed to acquire all the issued and outstanding share capital in H.I. Next Inc. for approximately $5.2 million.

Founded in 1997, Toronto based HI Next offers a suite of industry proven, peer reviewed tools to identify and address a broad range of behavioral, medical, and social problems affecting those suffering from mental illness. HI Next had total revenues from operations of approximately $3.3 million for the year-ended September 30, 2016.

On February 17, 2017, Vitalhub agreed to acquire all of the issued and outstanding share capital in B Sharp Technologies for approximately $3.9 million.

Founded in 1998, Toronto based B Sharp Technologies develops and deploys client case management and electronic documentation solutions for healthcare, social services, and community care organizations. B Sharp Technologies had total revenues from operations of over $1.8 million for the year-ended December 31, 2016.

Vitalhub intends to close a brokered private placement of up to 83,333,333 units at $0.12 per unit, for gross proceeds of a minimum of $5,000,000 and a maximum of $10,000,000.

Each unit shall consist of one common share and one common share purchase warrant entitling the holder to purchase one common share for a period of twenty-four (24) months at a price of $0.18 per common share.
The offering is conducted through a syndicate of agents co-led by Echelon Wealth Partners Inc. and Paradigm Capital Inc. and including Canaccord Genuity Corp., Industrial Alliance Securities Inc. and Mackie Research Capital Corporation.

Vitalhub will use the net proceeds to pay the cash portions of B Sharp Technologies purchase price and HI Next purchase price as well as for working capital and general corporate purposes.

Founded in 2012, Vitalhub delivers an innovate platform for mHealth, a modularized and standardized solution for creating mobile health applications. The Vitalhub platform provides the control, security, privacy and consistency essential in the healthcare industry. Vitalhub includes apps for clinical care, communications, and medical research, and the platform to expand this to other areas.

photo credit: B Sharp Technologies