NU Online News Service, Sept. 28, 2:25 p.m. – HealthExtras Inc., Rockville, Md., a company that sells health and disability insurance products and related products through the Web, says it has raised more than $12 million in cash by selling 3 million shares of common stock for $4.67 per share through a private placement.
The company has also issued 840,000 warrants at 115% of $4.67 per share. If the buyer exercises the warrants, HealthExtras will get another $4.5 million, the company says.
Unregistered securities are securities that can only be sold to large, sophisticated investors, such as institutional investors, and not to ordinary retail customers.
HealthExtras now has a total of $30 million in cash, and it is already bringing in more cash from operations that it’s spending, the company says.
The company wants to use the new cash to “pursue acquisition and marketing opportunities” that could help it build worksite sales and international sales, the company says.