MedPlus Corporation, a Colorado Springs-based health care and financial management and occupational health care company, has entered into an equity financing agreement with Wall Street Connections Inc. for the sum of approximately $3 million.
Wall Street Connections Inc. is headquartered in Clearwater, Fla.
The terms of the transaction dictate MedPlus will enter into an investment banking agreement with Wall Street, which is in the process of finalizing an agreement with R.M. Stark & Co., also located in Florida. Stark will serve as exclusive placement agent for a bridge funding of between $200,000 to $500,000, in the form of convertible bonds.
A subsequent offering will also be offered for approximately $3 million, which will result from a private placement or secondary offering of MedPlus common stock.
The new relationship with Wall Street Connections will assist MedPlus in growth over the next five years, according to MedPlus President Tim C. DeHerrera. DeHerrera stated the firm is experienced and has a demonstrated track record of understanding businesses and the opportunities it can most successfully take advantage of in its pursuits.
MedPlus reported revenue of more than $1.73 million for the first quarter of 1996.