Healthcare Corporation of America (OTCPK:HCCA.E) announced a private placement of convertible term notes for gross proceeds of $1,000,000 on April 4, 2014. The notes will have an interest rate of 8% per annum and will mature on April 2, 2015. Returning investors Selway Capital Holdings LLC, Chardan Capital Markets, LLC., Asset Management Arm, and Evan Genack each subscribed notes for $900,000, $50,000, and $50,000 respectively. The company also issued warrants to purchase an aggregate of 2,000,000 common shares for a period of five years. The exercise price of the warrants will be equal to the lowest of the following the price of common shares sold in the next financing round, or the conversion price of a convertible note raised after the next financing round, or the exercise price of warrants issued in the next financing round. The warrants may also be exercised on a cashless basis. Mitchell S. Nussbaum and Giovanni Caruso of Loeb & Loeb LLP will serve as legal advisor to the company. Kerry Propper of Pearl, Cohen-Zedek & Latzer will serve as legal advisor to Chardan Capital Markets, LLC., Asset Management Arm. 340 Basics, Inc., a wholly-owned subsidiary of the company is delivering a guaranty of the company's obligations under the notes. The guaranty is an absolute guaranty of payment and not of collection.

On April 4, 2014, Healthcare Corporation of America closed the transaction.