STUART, FL, May 22, 2008 (MARKET WIRE via COMTEX) —-Liberator Medical Holdings, Inc. (PINKSHEETS: LBMH: undefined, undefined, undefined%) today announced a private placement consisting of convertible notes and warrants to purchase an aggregate of 8,750,000 shares of its common stock for gross proceeds of $3.5 million on May 22, 2008, to a single institutional investor. The notes are convertible into shares of the Company’s common stock at an initial conversion price of $0.80 per share, subject to adjustment, and mature on May 22, 2010. The warrants have a term of 5 years and are exercisable at $1.00 per share. The Company is to use these funds to increase its advertising and sales efforts and any resulting increase in General and Administrative expenses. Ladenburg Thalmann & Co. Inc. acted as the sole placement agent and financial advisor to the Company.
Mark Libratore, the Company’s President and CEO, commented, “We are very pleased to complete this private placement as it affords us the ability to accelerate our business plan and capitalize on short-term opportunities.”
The notes, the warrants, the shares of common stock issuable upon conversion of the notes, and the shares of common stock issuable upon exercise of the warrants have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration under the Securities Act and applicable state securities laws or an applicable exemption from those registration requirements.