CCA makes moves for merger with StorCOMM

Creative Computer Applications Inc. (CCA), a provider of Clinical Information Systems (CIS) has entered into an agreement for the private placement of its common stock with a group of accredited investors. The funds will be used for the transaction related expenses of the recently announced merger with StorCOMM, Inc., costs associated with the integration of the businesses, and general working capital purposes, according to the company.

"The private placement will provide the necessary additional funds to help ensure the successful execution of our strategic integration plans associated with our merger with StorCOMM, Inc," Steven M. Besbeck, president and CEO of CCA. He added, "We are pleased that this group of investors has the confidence in us, our strategy, and appreciate their support."

Under the purchase agreement, CCA will sell an aggregate of 1.5 million shares of common stock and warrants to purchase up to 300,000 shares of common stock to the investors in a private placement. The per share purchase price of the shares is $2.00, for an aggregate purchase price of $3 million, and the exercise price under the warrants is $3.00 per share.

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