TORONTO, ON / ACCESSWIRE / October 11, 2019 / NEXGENRX INC. (TSXV:NXG) (“NexgenRx” or the “Company”) is pleased to announce that it has restructured its outstanding secured indebtedness. In particular, it has repaid $1,250,000 of its previously announced secured loan in the aggregate principal amount of $1,750,000, which it had obtained from an arm’s length shareholder in connection with the Company’s acquisitions announced last year (see the Company’s press release dated July 24, 2018). The foregoing lender has agreed to amend and extend its secured loan in respect of the $500,000 principal amount that remains outstanding, with the interest rate going forward being six percent (6%) payable over 24 months to maturity at August 31, 2021.
Payment of the principal in the amount of $1,250,000 plus accrued interest owing on the foregoing secured loan was funded through cash on hand and unsecured loans from three insiders, including the CEO, plus two arms-length shareholders. Such unsecured loans bear interest at a rate of eight percent (8%) per annum (payable quarterly), maturing October 15, 2020.
“I wish to thank the principal shareholders who participated with me in the re-organization of this important acquisition loan, signifying their on-going commitments to the growth of NexgenRx. We continue to build the Company without the need for any traditional bank financing at this point in our evolution, based on this strong shareholder base” stated Ron Loucks, Founder, President & CEO.
NexgenRx is Canada’s only independent full service technology solutions provider, offering proprietary full front end enrolment, hour bank and mobile access capabilities, combined with state of the art claims adjudication and full provider network coverage. These combined capabilities allow NexgenRx to provide complete proprietary solutions to plan sponsors that need sophisticated front end administration and health benefit technology applications, all in a cost- effective manner. NexgenRx is committed to building partnerships with organizations looking to exceed the expectations of their clients and plan members and deliver superior administration and claims processing solutions at a competitive cost. More information on NexgenRx can be found at www.nexgenrx.com.
Caution Regarding Forward-Looking Statements
Except for statements of historical fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: uncertainty as to whether our strategies and business plans will yield the expected benefits; availability and cost of capital; the ability to identify and develop and achieve commercial success for existing and new products and technologies; the level of expenditures necessary to maintain and improve the quality of products and services; changes in technology and changes in laws and regulations; continued development and enhancement of the Company’s proprietary software technology; cyber security risks and the other risks and uncertainties disclosed in our annual Management’s Discussion and Analysis, as filed under our profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Ronald C. Loucks
Kelly Ehler CPA, CA
SOURCE: NexgenRx Inc.
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