Patient Home Monitoring Corp.

April 19, 2016 17:08 ET

Patient Home Monitoring Announces Appointment of New Chief Operating Officer; Insider Ownership Increases to Over 20%

LAFAYETTE, LOUISIANA--(Marketwired - April 19, 2016) - Patient Home Monitoring Corp. ("PHM") (TSX VENTURE:PHM), a healthcare service company in the US and Canada, announced today that it has promoted Greg Crawford to the position of Chief Operating Officer.

Mr. Crawford joined PHM through PHM's purchase of Patient-Aids, Inc. last year. Mr. Crawford began working at Patient-Aids in 1994, becoming a partner 3-years later and Patient-Aids' sole owner in 2004. During the period of his ownership, Patient-Aids grew at an annual rate of approximately 25% and from 2013 through 2015 more than doubled its revenue and quadrupled its earnings as it acquired and successfully integrated 5 home medical equipment ("HME") businesses.

In finalizing the post-closing payments for the previously announced acquisition of Patient-Aids, PHM and Mr. Crawford have agreed to amend the original purchase agreement which required PHM to pay approximately $11.4 million to Mr. Crawford in a combination of cash and shares over two payments in April and October 2016.

Under the amending agreement, Mr. Crawford has elected to receive all of the remaining consideration due under the original purchase agreement for 33,758,952 shares in addition to stepping into his new role as Chief Operating Officer. As a result, total insider ownership will exceed 20%. In addition, PHM will issue to an arms-length party 285,000 shares associated with the closing of the amendment. The foregoing transactions are subject to final approval of the TSX Venture Exchange.

"Greg will make an excellent addition to the executive management team with his background, expertise, and based on his execution over the last six months," said Casey Hoyt, CEO of PHM. "Greg brings substantial operating and M&A experience to his role as PHM's Chief Operating Officer. A hands-on, problem solver, Greg has demonstrated significant skill at growing HME businesses both organically and by acquisition."

"I am extremely excited about joining the senior leadership team of PHM and continuing to build upon our prior growth successes through bolt-on acquisitions, organic growth and operating efficiencies," said Greg Crawford, COO of PHM. "There is significant value in the PHM shares and our leadership team has a significant stake in the ongoing Company where we intend to create value for all shareholders."

About PHM

The explosive growth in the number of elderly patients in the US healthcare market is creating pressure to provide more efficient delivery systems. Healthcare providers, such as hospitals, physicians and pharmacies, are seeking partners that can offer a range of products and services that improve outcomes, reduce hospital readmissions, and help control costs. PHM fills this need by delivering a growing number of specialized products and services to achieve these goals. PHM is focused on a highly fragmented and developing market of small privately-held companies servicing chronically ill patients with multiple disease states caused mainly by age and obesity. Because of the new and highly fragmented nature of the market. PHM's post acquisition organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient's services and making life easier for the patient.

Forward-Looking Statements

Certain statements contained in this press release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to PHM, the intentions of PHM regarding the enhancement of the value of PHM and accelerating the development of PHM's business, and the success of its acquisitions, are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect PHM's current views and intentions with respect to future events, and current information available to PHM, and are subject to certain risks, uncertainties and assumptions. Material factors or assumptions were applied in providing forward-looking information. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. These factors include changes in law, the ability to implement business strategies and pursue business opportunities, state of the capital markets, the availability of funds and resources to pursue operations, decline of reimbursement rates, dependence on few payors, possible new drug discoveries, a novel business model, dependence on key suppliers, granting of permits and licenses in a highly regulated business, competition, difficulty integrating newly acquired businesses, low profit market segments as well as general economic, market and business conditions, amongst others. Should any factor affect PHM in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, PHM does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and PHM undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The securities referred to in this press release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This press release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.

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