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Intellinetics Inc., a cloud-based document solutions provider, has closed an equity and debt private placement financing and raised a total of $5.5 million. From the amount raised in the financing, $3.5 million was used for the initial purchase price of Graphic Sciences Inc., a company that specializes in document scanning and digital conversion services located in Madison Heights, Michigan.

Graphic Sciences had $6.7 million in revenues (unaudited) in its most recent fiscal year, ended September 30, 2019.

Simultaneous with the raise, Intellinetics restructured its balance sheet by converting all of its $4.7 million in existing convertible notes into shares of common stock at a conversion price of 8 cents per share. Further, the stockholders, by written consent of a majority in interest and pursuant to action by the board of directors of the company, have approved a 1-for-50 reverse stock split, which will be effective as of 5 p.m., Nevada time, on March 12, for stockholders of record as of the close of business on March 12, 2010.

The company implemented the debt conversion and reverse split to improve the liquidity and marketability of the company's common stock, and to provide better ability to respond to potential future opportunities to raise capital and make acquisitions , based upon and subject to future developments in the business and affairs of the company, and the future status of the capital markets and the economy, according to a news release.

The purchase of Graphic Sciences is expected to complement Intellinetics’ document management products and services to highly regulated, risk- and compliance-intensive markets.

“We believe that the acquisition of Graphics Sciences will be accretive and lays the groundwork for future growth opportunities, which is part of our ongoing company strategy,” stated James F. DeSocio, President & CEO of Intellinetics. “We are enthusiastic about the continued strong support of our investor community, and I firmly believe that the synergies and cross-selling opportunities with Graphic Sciences set us on a momentum path for strong organic and inorganic growth. We now have a platform that is more attractive to current and future customers and partners.”