PainCare Reports on Key Corporate Developments
03 Octobre 2007 - 6:41PM
PR Newswire (US)
CEO Comments on Company's Restructuring, Recovery and
Revitalization ORLANDO, Fla., Oct. 3 /PRNewswire-FirstCall/ --
Randy Lubinsky, CEO of PainCare Holdings, Inc. (AMEX:PRZ), one of
the nation's leading providers of pain-focused medical and surgical
solutions and services, today issued the following corporate update
detailing recent developments that are expected to positively
impact and support the Company's refined long term growth strategy.
Specifically, Lubinsky stated: "We have succeeded in implementing a
series of important restructuring initiatives that have now
positioned us to direct our focus on the ongoing recovery and
planned revitalization of PainCare. Central to our corporate
restructuring plan, PainCare completed the divestitures of its
Ambulatory Surgery Centers (ASCs) located in Maryland and South
Florida, generating more than $29 million in cash and debt relief
and providing for $2.3 million in potential earn-out provisions
over the next couple of years. Moreover, as a consequence of
selling the ASCs, we succeeded in reducing our outstanding debt
obligations to our senior lender from $30 million to $8.5 million,
thus materially strengthening our balance sheet. Further, we remain
in active discussions with our senior lender to resolve the
remaining debt balance, and recently received a six-month
forbearance on the associated note. Details related to this
forbearance agreement, may be found in a Form 8-K that will be
filed with the SEC in the next several days. "In tandem with the
sale of our ASCs, PainCare also initiated an in-depth review of our
Practice Management Group. This evaluation process resulted in our
election to either close or sell back to the original shareholder
physician 10 of the 20 practices that comprised our former national
network. The collective impact of this restructuring of our network
of affiliated practices should yield PainCare a much stronger
operating platform in 2008 and beyond. Although we may yet divest
two more practices, which will be determined prior to year end, we
plan to distinguish all remaining practices as nationally
recognized Centers of Excellence for the delivery of state-of-
the-art pain care and treatment. "We have also been working to
support those business interests that, on a moving forward basis,
will serve as true driving forces behind PainCare's revitalization
efforts. "These include Caperian, Inc., a wholly-owned subsidiary
of PainCare, whose mission is to create and drive value through
development of commercial medical real estate projects on a
national basis, including surgery centers, medical buildings and
specialty hospitals and clinics. "Integrated Pain Solutions (IPS),
another wholly-owned subsidiary, has been gaining considerable
traction in its effort to emerge as the nation's first managed
services organization solely dedicated to improving care and
reducing costs associated with the treatment of pain. Since first
launching operations in early 2007, IPS has made progress in
ramping up its infrastructure and beginning the transformation from
a development stage to a revenue generating company. To date, IPS
has established provider networks in Colorado, Florida, Illinois,
Michigan, New Jersey and Tennessee (with plans to expand into
Alabama, California, Georgia, New York, Ohio, Pennsylvania and
Texas over the next six to nine months), and has begun
implementation of its contract with Coalition America, the nation's
leader in medical claim savings. "In addition to directing growth
in our Practice Management Group, Caperian and IPS, PainCare is
also exploring opportunities to leverage our national reputation
and medical marketing expertise to promote the creation of
additional revenue channels for our Company. "In closing, it is our
greatest hope that the recovery underway at PainCare will help to
ultimately revitalize shareholder confidence in our Company.
PainCare's longstanding investors, Midsummer Capital and Islandia,
increased its investment in our Company by way of a $2 million
equity placement, helping to provide cash resources needed to
support our operations. Specific terms and conditions of this
equity transaction, which closed on Tuesday of this week and
involved the issuance of both common shares and warrants, will be
detailed in a related Form 8-K to be filed with the SEC in the next
several days. "To those shareholders who have stood by us through
the many challenges we've endured and overcome over the past two
years, I'd like to once again extend my thanks for your ongoing
support," concluded Lubinsky. About PainCare Holdings, Inc.
Headquartered in Orlando, Florida, PainCare Holdings, Inc. is one
of the nation's leading providers of pain-focused medical and
surgical solutions and services. Through its proprietary network of
acquired or managed physician practices, and in partnership with
independent physician practices and medical institutions throughout
the United States and Canada, PainCare is committed to utilizing
the most advanced science and technologies to diagnose and treat
pain stemming from neurological and musculoskeletal conditions and
disorders. Through its wholly owned subsidiary, Caperian, Inc.,
PainCare offers medical real estate and development services.
Through Integrated Pain Solutions, the Company is engaged in
pioneering the nation's first managed services organization that
offers a multi-disciplinary healthcare network focused on the
treatment of pain. For more information on PainCare Holdings,
please visit http://www.paincareholdings.com/. This press release
contains forward-looking statements that may be subject to various
risks and uncertainties. Such forward-looking statements are made
pursuant to the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995 and are made based on management's
current expectations or beliefs as well as assumptions made by, and
information currently available to, management. These
forward-looking statements, which may include statements regarding
our future financial performance or results of operations,
including expected revenue growth, cash flow growth, future
expenses, future operating margins and other future or expected
performance, are subject to the following risks: the acquisition of
businesses or the launch of new lines of business, which could
increase operating expenses and dilute operating margins; the
inability to attract new patients by our owned practices, the
managed practices and the limited management practice; increased
competition, which could lead to negative pressure on our pricing
and the need for increased marketing; the inability to maintain,
establish or renew relationships with physician practices, whether
due to competition or other factors; the inability to comply with
regulatory requirements governing our owned practices, the managed
practices and the limited management practices; that projected
operating efficiencies will not be achieved due to implementation
difficulties or contractual spending commitments that cannot be
reduced; and to the general risks associated with our businesses.
In addition to the risks and uncertainties discussed above you can
find additional information concerning risks and uncertainties that
would cause actual results to differ materially from those
projected or suggested in the forward-looking statements in the
reports that we have filed with the Securities and Exchange
Commission. The forward-looking statements contained in this press
release represent our judgment as of the date of this release and
you should not unduly rely on such statements. Unless otherwise
required by law, we undertake no obligation to publicly update or
revise any forward- looking statements, whether as a result of new
information, future events or otherwise after the date of this
press release. In light of these risks and uncertainties, the
forward-looking events and circumstances discussed in the filing
may not occur, and actual results could differ materially from
those anticipated or implied in the forward-looking statements. For
more information, please contact: Media Relations Suzanne Beranek,
APR, Beranek Communications, LLC 407-475-0763 or via email at
Investor/Shareholder Relations Elite Financial Communications
Group, LLC Dodi Handy, President and CEO, or Daniel Conway, Chief
Strategist 407-585-1080 or via email at DATASOURCE: PainCare
Holdings, Inc. CONTACT: Media Relations, Suzanne Beranek, APR, of
Beranek Communications, LLC, +1-407-475-0763, ;
Investor-Shareholder Relations, Dodi Handy, President and CEO, or
Daniel Conway, Chief Strategist, both of Elite Financial
Communications Group, LLC, +1-407-585-1080, Web site:
http://www.paincareholdings.com/
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