Orion HealthCorp Completes Major Strategic Initiatives
04 Diciembre 2006 - 6:30AM
Business Wire
Orion HealthCorp, Inc. (AMEX: ONH) today announced that it had
completed its previously announced acquisition of all of the issued
and outstanding stock of two revenue cycle management companies
located in Los Angeles, California, and Mobile, Alabama. In
addition, the Company also announced the completion of its
previously announced debt and equity private placement with Phoenix
Life Insurance Company and with Brantley Partners IV, L.P.,
currently Orion�s largest investor, resulting in gross proceeds to
the Company of $8 million. These transactions had been contingent
upon certain closing conditions, the latest of which was satisfied
when shareholders approved all agenda items presented at the
Company�s special meeting on November 27, 2006. The Company also
announced that it had entered into an agreement with Wells Fargo
Foothill, Inc. for the provision of a new senior secured credit
facility in the aggregate principal amount of $16.5 million,
consisting of a $2 million revolving loan commitment, a $4.5
million term loan and a $10 million acquisition facility commitment
available, subject to certain conditions, for future acquisitions.
Orion acquired all of the issued and outstanding capital stock of
Rand Medical Billing, Inc. Located in Simi Valley, California, Rand
is a full service billing agency providing medical billing,
exclusively for anatomic and clinical pathology practices. The
Company also purchased all the issued and outstanding capital stock
of On Line Payroll Services, Inc. and On Line Alternatives, Inc.,
collectively known as On Line and located in Mobile, Alabama. On
Line Payroll Services provides payroll processing services to small
businesses, a few of which are also customers of On Line
Alternatives, Inc. On Line Alternatives, Inc. is an outsourcing
company providing data entry, insurance filing, patient statements,
payment posting, collection follow-up and patient refund processing
to medical practices. Terrence L. Bauer, chief executive officer of
Orion HealthCorp, said, �These acquisitions represent a major
advance for Orion HealthCorp. Up until now, we have been hard at
work positioning ourselves to execute our business plan. Initially,
we restructured, consolidated and reduced costs, all of which were
necessary to begin the growth phase of our company�s development
cycle. With the approval of our shareholders, we have now been able
to raise the capital necessary to complete two strategic
acquisitions that will substantially expand Orion�s footprint and
client base in the revenue cycle management industry.� Mr. Bauer
continued, �These are all truly milestone events for Orion
HealthCorp. The capital now available to us through this financing
will allow us to both implement current organic growth initiatives
and to continue to evaluate strategic acquisitions. I would like to
thank our shareholders for their support, our Board of Directors
for their guidance and our employees for their dedication and
commitment to our vision and mission. In addition, we are extremely
enthusiastic about completing the transactions with our new
associates in California and Alabama. We look forward to
accelerating our collective internal growth and continuing to
provide outstanding service to all of our clients.� Orion�s mission
is to provide superior billing, collections, practice, business and
financial management services for physicians resulting in improved
profitability for its clients and increased enterprise value for
its stakeholders. 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, increases in labor and employee benefit costs, 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 integrate acquired operations and 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. Orion HealthCorp, Inc. (AMEX: ONH) today announced that it
had completed its previously announced acquisition of all of the
issued and outstanding stock of two revenue cycle management
companies located in Los Angeles, California, and Mobile, Alabama.
In addition, the Company also announced the completion of its
previously announced debt and equity private placement with Phoenix
Life Insurance Company and with Brantley Partners IV, L.P.,
currently Orion's largest investor, resulting in gross proceeds to
the Company of $8 million. These transactions had been contingent
upon certain closing conditions, the latest of which was satisfied
when shareholders approved all agenda items presented at the
Company's special meeting on November 27, 2006. The Company also
announced that it had entered into an agreement with Wells Fargo
Foothill, Inc. for the provision of a new senior secured credit
facility in the aggregate principal amount of $16.5 million,
consisting of a $2 million revolving loan commitment, a $4.5
million term loan and a $10 million acquisition facility commitment
available, subject to certain conditions, for future acquisitions.
Orion acquired all of the issued and outstanding capital stock of
Rand Medical Billing, Inc. Located in Simi Valley, California, Rand
is a full service billing agency providing medical billing,
exclusively for anatomic and clinical pathology practices. The
Company also purchased all the issued and outstanding capital stock
of On Line Payroll Services, Inc. and On Line Alternatives, Inc.,
collectively known as On Line and located in Mobile, Alabama. On
Line Payroll Services provides payroll processing services to small
businesses, a few of which are also customers of On Line
Alternatives, Inc. On Line Alternatives, Inc. is an outsourcing
company providing data entry, insurance filing, patient statements,
payment posting, collection follow-up and patient refund processing
to medical practices. Terrence L. Bauer, chief executive officer of
Orion HealthCorp, said, "These acquisitions represent a major
advance for Orion HealthCorp. Up until now, we have been hard at
work positioning ourselves to execute our business plan. Initially,
we restructured, consolidated and reduced costs, all of which were
necessary to begin the growth phase of our company's development
cycle. With the approval of our shareholders, we have now been able
to raise the capital necessary to complete two strategic
acquisitions that will substantially expand Orion's footprint and
client base in the revenue cycle management industry." Mr. Bauer
continued, "These are all truly milestone events for Orion
HealthCorp. The capital now available to us through this financing
will allow us to both implement current organic growth initiatives
and to continue to evaluate strategic acquisitions. I would like to
thank our shareholders for their support, our Board of Directors
for their guidance and our employees for their dedication and
commitment to our vision and mission. In addition, we are extremely
enthusiastic about completing the transactions with our new
associates in California and Alabama. We look forward to
accelerating our collective internal growth and continuing to
provide outstanding service to all of our clients." Orion's mission
is to provide superior billing, collections, practice, business and
financial management services for physicians resulting in improved
profitability for its clients and increased enterprise value for
its stakeholders. 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, increases in labor and employee benefit costs, 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 integrate acquired operations and 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.
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