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Venture Capital News: CodeSmart Holdings Gains $1.5M In Equity

2013-11-20
NEW YORK, NY, CodeSmart Holdings has received a $1.5 million equity financing from AGA III Capital.
CodeSmart Holdings, with its subsidiary, The CODESMART Group, (collectively, 'CODESMART'), a premier ICD-10 education and solutions group that offers CODESMART UNIVERSITY, its on-line education solution and customizable training solutions, announced today that it has received a firm commitment for $1.5 million in common stock equity financing from AGA III Capital LLC at a price of $1.25 per share.

The financing is subject to normal and customary due diligence and will close in separate tranches with first tranche expected to close by November 25, 2013. The Company believes that this financing can enable the Company to become cash flow positive by the end of the first quarter of 2014.

'We are pleased to reach a financing agreement with AGA. This capital commitment allows for execution of management's plan to capture the ICD-10 transition opportunity over the next several years,' says Ira Shapiro, CodeSmart Chairman and CEO. 'Over the past several months we have seen a major shift from discussion to action by the payer and provider communities. We believe this shift will grow significantly over the next several months, as companies prepare for the Oct 1, 2014 transition date.'

According to Rusty Allen, Manager of AGA, 'CodeSmart is positioned well to help its clients through this transition. There are few companies with such a unique business to help their clients in the ICD-10 space. This capital reaffirms our commitment to management and the company.'
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