Merge Healthcare Files To Raise Capital, and to Sell for Holders (MRGE)

Merge Healthcare Incorporated (NASDAQ: MRGE) had already released data last week that it was conducting a note exchange offering after it had shown a loss after items.  A filing was put in on Friday evening showing that the company is ready to raise capital and may sell shares for a holder.

The shelf registration is for up to $150 million in any combination of the following securities sales: debt, common stock, preferred stock, warrants, depositary shares, stock purchase contracts, and stock purchase units.

More importantly, Merge also noted that holders may offer and sell up to 10,500,000 shares of common stock from time to time under the prospectus, Merge will receive no proceeds by the selling holders.

The full S-3 filing is here.  Merge closed at $6.66 on Friday against a 52-week range of $3.11 to $7.23, and its market cap is only $597 million.