NEW YORK, NY--(Marketwired - Jul 23, 2013) - Selway Capital Acquisition Corporation (OTCQB: SWCB) (OTCQB: SWCAL) ("Selway") today announced that Selway and its subsidiaries, Healthcare Corporation of America, Prescription Corporation of America and PCA Benefits Inc., have entered into a loan and security agreement for a five year convertible loan of $5 million from Partners for Growth III L.P. ("PFG") The transaction closed on July 17, 2013.
The loan is convertible into Series C common stock at an initial rate of $8.00 a share.
Interest on the loan is payable at prime plus 5.25% per annum, subject to a rate reduction under certain conditions.
As part of consideration for the loan, Selway issued PFG warrants to purchase an aggregate of 220,000 shares of Class C common stock. These warrants are exercisable, for $7.50 per share, at any time on or prior July 17, 2018.
Selway has filed a Form 8-K with the Securities and Exchange Commission that includes a detailed description of the transaction. Access to the form can also be found on the SEC section of the Selway Capital Acquisition Corporation website at www.selwaycapital.com.
About Selway Capital Acquisition Corporation
Following the consummation of Selway's acquisition of Healthcare Corporation of America on April 10, 2013, Selway operates its business through Healthcare Corporation of America. Healthcare Corporation of America is a pharmacy benefit manager, or PBM. Its mission is to reduce prescription drug costs for clients while improving the quality of drug care. It administers prescription drug benefit programs for employers who contract with it in order to provide this component of healthcare benefits to their employees. A growing customer base includes commercial clients of various sizes and industries, business associations and trade groups, local government entities, labor unions, charitable and non-profit organizations, and third-party administrators of self-insured benefit plans. The company operates in the marketplace under the name of its subsidiary, Prescription Corporation of America, or PCA.