Orion Healthcorp (AMEX:ONH)
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Orion HealthCorp, Inc. (AMEX: ONH) today announced that,
consistent with its stated growth objectives, it has signed definitive
stock purchase agreements for the acquisition of all of the issued and
outstanding capital stock of two revenue cycle management companies
located in Los Angeles, California, and Mobile, Alabama. In support of
the Company's growth plan, the Company has also obtained a $3.0
million commitment from Phoenix Life Insurance Company and a $1.65
million commitment from Brantley Partners IV, L.P., currently Orion's
largest investor, which will result in an equity capital infusion to
the Company of approximately $4.65 million. In addition, the Company
announced a $3.35 million commitment from Phoenix Life Insurance
Company for mezzanine financing. The Company expects these
transactions to close in the next 60 - 75 days, pending approval of
certain of the transactions by its shareholders at a special meeting,
obtaining regulatory approvals and satisfying other closing
conditions, including obtaining senior financing, the terms of which
are currently being negotiated with a potential lender.
Terrence L. Bauer, chief executive officer of Orion HealthCorp,
said, "This is an exciting day for Orion, its employees and
shareholders. Early in our development, we communicated to our
investors that we had a well-conceived plan to grow our company. This
announcement confirms our plans to execute that strategy. Upon the
completion of these transactions, we are beginning to realize the
promise of Orion HealthCorp. We have come a long way in a short time.
The revenue cycle management industry represents an enormous
opportunity, and we expect that these two accretive acquisitions are
just the early stages of our emergence as a leader in this expanding
sector. My gratitude goes out to our Board and our employees, who were
all instrumental in putting this multi-faceted growth plan together
and making it a reality."
Orion HealthCorp, Inc. provides complementary business services to
physicians through two wholly owned subsidiaries: Integrated Physician
Solutions, Inc., providing business and management services to
physician practices; and Medical Billing Services, Inc., providing
physician billing and collection services and practice management
solutions to hospital-based physicians. The core competency of the
Company is its long-term experience and success in working with and
creating value for physicians. For more information on Orion
HealthCorp, Inc., visit the Company's website at
www.orionhealthcorp.com.
Certain statements in this press release constitute
"forward-looking statements" within the meaning of the Securities Act
of 1933, as amended, and the Securities Exchange Act of 1934, as
amended (the "Acts"). Any statements contained herein that are not
statements of historical fact are deemed to be forward-looking
statements, including all statements regarding improving financial
metrics and future growth.
The forward-looking statements in this press release are based on
current beliefs, estimates and assumptions concerning the operations,
future results, and prospects of Orion HealthCorp, Inc. and the other
companies described herein. As actual operations and results may
materially differ from those assumed in forward-looking statements,
there is no assurance that forward-looking statements will prove to be
accurate. Forward-looking statements are subject to the safe harbors
created in the Acts. Any number of factors could affect future
operations and results, including without limitation, changes in
federal or state healthcare laws and regulations and third party payer
requirements, changes in costs of supplies, the loss of major
customers, labor and employee benefits, an inability to obtain a
forbearance on the Company's revolving lines of credit as a result of
the Company's default of its financial covenants, increases in
interest rates on the Company's indebtedness as well as general market
conditions, competition and pricing, and the Company's ability to
successfully implement its business strategies, including the impact
and expense of any potential acquisitions and the ability to obtain
necessary approvals and financing. Orion HealthCorp, Inc. undertakes
no obligation to update publicly any forward-looking statements,
whether as a result of new information or future events.