AIM Health Group to raise $3.5 million through private placement

AIM Health Group Inc. ("AIM" or the "Company") (TSXV - AHG), a fully integrated health care company, announced today that it has engaged Raymond James Ltd., on a "commercially reasonable efforts" agency basis, to complete a private placement of up to $3.5 million principal amount of 10% convertible secured debentures (the "Debentures") to accredited investors.

The Debentures are to be priced at par per $1,000 principal amount thereof, bear interest at a rate of 10% per annum, payable quarterly, and mature three years from the date of closing of the private placement. The Debentures are to be convertible into common shares, at the option of the holder at any time prior to maturity, at a conversion price of $0.30 per share. The Company can redeem the Debentures at any time after one year, without penalty, and may force the conversion of the Debentures if the volume weighted average trading price of its common shares is at or above $0.40 for 20 calendar days.

AIM intends to use the net proceeds of the private placement to repay debt and for capital expansion purposes. The private placement is subject to, among other things, the completion of definitive documentation and regulatory approval.