Streamline Health Solutions, Inc., a provider of integrated solutions, technology-enabled services and analytics supporting revenue cycle optimization for healthcare enterprises, announced that it has entered into definitive agreements with certain institutional and accredited investors in a private placement, including certain directors and executive officers of Streamline, for the sale of 9,473,691 shares of common stock at a price of $1.02 per share for aggregate gross proceeds of $9,663,165. The offering is expected to close on or about October 15, 2019, subject to the satisfaction of customary closing conditions.

The Company intends to use approximately $5.8 million of the net proceeds from the offering for the full redemption of its outstanding convertible preferred stock with a book value of $8.7 million, representing a substantial discount. Streamline intends to use the remaining net proceeds for working capital, primarily to continue development and accelerate sales of its eValuator cloud-based, automated pre-bill coding analysis technology.

Craig-Hallum Capital Group is acting as exclusive placement agent in connection with this offering.

The shares of common stock issued in this offering have not been registered under the Securities Act of 1933, as amended ("Securities Act"), or state securities laws and may not be offered or sold in the United States absent registration with the U.S. Securities and Exchange Commission (the "SEC") or an applicable exemption from the registration requirements under the Securities Act and applicable state securities laws. Pursuant to a registration rights agreement, Streamline has agreed to file a registration statement with the SEC to register the resale of the shares of common stock issued in this offering within thirty days.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.