ActiveCare, Inc.,a service leader in disease and diabetes management, today announced the closing of an equity investment and conversion of debt to common stock.
In connection with loan conversion agreements and a securities purchase agreement, the Company will issue a total of 9,256,332 shares of common stock. This brings the total issued and outstanding shares to approximately 19,900,000.
Numerous ActiveCare investors have converted short-term debt and debentures totaling $6,107,240 into 8,142,999 common shares. The company also closed on an equity investment of $835,000 in exchange for 1,113,336 shares of common stock from unrelated investors. This is in addition to the debt conversion and equity investment by David Derrick, CEO and Chairman of ActiveCare, Inc. announced on July 17, 2013, which now brings the total debt conversion and equity investments for this quarter to $7,385,776 and $3,070,000 respectively, totaling $10,455,776. As of June 30, 2013 the Company''s shareholders'' deficit was $7,119,629. With the recent equity investment and debt conversions, the Company currently has an estimated shareholders'' equity of $3,000,000, a difference of over $10,000,000.
"I am pleased to announce these additional investments and debt conversions as we continue to bolster our balance sheet," commented David Derrick, Chairman and Chief Executive Officer of ActiveCare. "As our forward momentum continues to yield solid results with ramping customer growth coinciding with record revenue, it was now an opportune time to close on this additional capital and debt to equity conversion as we simplify our balance sheet and focus on maximizing shareholder value. In a little over one year, ActiveCare has grown quarterly revenues from $170,000 in March of 2012 to over $4.2 million in the June 2013 quarter, demonstrating the industry''s acceptance of ActiveCare as the leader in diabetes management."
ActiveCare, Inc. is the telehealth and personal emergency response solution leader. Headquartered in Orem, Utah, and publicly traded on the OTC Bulletin Board under symbol ACAR, ActiveCare is committed to providing consistent excellence in quality and safety, and friendly care for members and caregivers alike.