|[August 04, 2014]
AUXILIO Inc. Announces Conversion of Convertible Debt
MISSION VIEJO, Calif. --(Business Wire)--
AUXILIO, Inc. (OTCQX: AUXO) ("AUXILIO" or "the Company"), the nation's
leading Managed Print Services (MPS) company for the healthcare
industry, today announced that its $1,550,000 secured convertible
promissory note balance outstanding as of June 30, 2014 has been
converted to 1,550,000 shares of common stock. Following this
transaction, the Company has minimal debt outstanding.
"We continue to be appreciative of the support our debt holders and
shareholders have given us over the years. These conversions re-enforce
this fact and will allow us to maintain a strong balance sheet as we
continue to drive growth across our Managed Print Services and
Information Security business lines," said Joseph Flynn, Chief Executive
Officer for Auxilio.
AUXILIO closed a private offering of secured convertible promissory
notes on July 29, 2011. The Company sold units consisting of a $5,000
secured convertible note ("the Note") and a warrant to purchase 1,000
shares of common stock at an exercise price of $1.50 per share. The
Notes matured on July 29, 2014; accrued interest at a rate of 8% per
annum, compounded annually, and were convertible into shares of common
stock at a conversion price of $1.00 per share. The warrants expire
April 29, 2016 and are exercisable to purchase up to 370,000 shares of
AUXILIO's common stock. Total gross proceeds from the offering was
The holders of the Notes, which includes several members of the Board at
the time of the initial offering, elected to convert all of the unpaid
principal into 1,850,000 shares of common stock during the term of the
agreement with te bulk being converted in July, 2014. The warrants
remain outstanding until their exercise or expiration.
About AUXILIO, Inc.
AUXILIO is the leading provider of Managed Print Services for the
healthcare industry. A true Management Services company, AUXILIO takes
full responsibility for healthcare customers' onsite print environment.
Hospitals and health systems benefit from infrastructure and process
improvements that immediately reduce the cost of print/digital systems,
provide sustainable increases in employee productivity and enables
hospital staff to better focus on providing patient care. AUXILIO also
provides a healthcare IT advisory and professional services, including
information security, risk management and compliance, using the same
focused approach on cost savings and operational efficiencies as their
core managed print services business.
Founded in 2004, AUXILIO serves a national portfolio of over 100
hospital campuses and manages in excess of 1.3 billion documents
annually from over 59,000 devices supporting more than 250,000
caregivers. AUXILIO's business model is vendor neutral, provides
full-time, on-site customer service and technical experts and is
exclusive to the healthcare industry.
For more information about AUXILIO, visit http://www.AUXILIOinc.com/.
Forward Looking Statements
This release contains certain forward-looking statements relating to the
business of AUXILIO, Inc. that can be identified by the use of
forward-looking terminology such as ``believes,'' ``expects,''
"anticipates," "may" or similar expressions. Such forward-looking
statements involve known and unknown risks and uncertainties, including
uncertainties relating to product/services development, long and
uncertain sales cycles, the ability to obtain or maintain patent or
other proprietary intellectual property protection, market acceptance,
future capital requirements, competition from other providers, the
ability of our vendors to continue supplying the company with equipment,
parts, supplies and services at comparable terms and prices and other
factors that may cause actual results to be materially different from
those described herein as anticipated, believed, estimated or expected.
Certain of these risks and uncertainties are or will be described in
greater detail in our Form 10-K and Form 10-Q filings with the
Securities and Exchange Commission, which are available at http://www.sec.gov.
AUXILIO, Inc. is under no obligation (and expressly disclaims any such
obligation) to update or alter its forward-looking statements whether as
a result of new information, future events or otherwise.
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