Patient Home Monitoring Corp.

July 04, 2013 09:30 ET

Patient Home Monitoring (PHM) Announces Execution of Letters of Intent with Acquisition Targets

SAN FRANCISCO, CALIFORNIA--(Marketwired - July 4, 2013) -


Patient Home Monitoring Corp. (TSX VENTURE:PHM) ("PHM") today announced it has executed Letters of Intent (LOIs) to acquire two companies. When these companies are combined with PHM, the result will be accretive to the income statement with 12-month trailing revenues in excess of $8,400,000* and annual Adjusted EBITDA in excess of $1,300,000* subject to final due diligence. The acquisitions are also expected to increase organic growth in PHM's existing cardiology services portfolio.

PHM signed one LOI to acquire HHC of Florida, a company that delivers several products to patients requiring therapeutics for (1) organ transplant, (2) chemotherapy, and (3) chronic respiratory disease as well as in-home diagnostic devices through pharmacy locations throughout the US. Many of HHC's patients also may benefit from PHM's Coumadin testing business. HHC primarily delivers its services and products through independent and intermediate chain retail pharmacies. PHM expects HHC to continue to expand by offering services and products in additional niches that require efficiencies in delivery.

PHM signed a second LOI with HeartHealthy Meals Inc., an online cardiology-focused content aggregation and social networking company offering access to articles, forums, products, and services through its website for patients in the growing cardiology market. The website offers delivered heart healthy meals and gives patients access to an online community. In addition to selling delivered heart healthy meals, the online platform, due to launch as, will provide patients an opportunity to request information about additional services and products. PHM plans to continue to develop the forum for patients seeking information and solutions to their heart disease issues, thereby creating additional opportunities for revenue growth through lead generation.

PHM can execute these two acquisition opportunities with its current balance sheet and issue less than 10% of its total common shares. PHM will also assume debt as part of the acquisition price. Closing the acquisitions will be subject to exchange review and approval and final purchase agreements.

"With these acquisitions, PHM's services will now cover drug delivery, home monitoring and access to information and advice making us a complete patient home service business. The result will be healthier patients, lower costs and improved healthcare delivery," said Bob Kusher, CEO of PHM, "We expect strong revenue growth of our services to continue as health care providers scale back budgets and are being forced out of providing niche, high value added products and services."

About PHM

The explosive growth in elderly patients in the US healthcare market is creating pressure to decrease service costs. Healthcare providers, such as hospitals, physicians and pharmacies, cannot efficiently offer a full range of services with budgets being scaled back by insurance companies and Medicare. This cost pressure to healthcare providers is creating a gap in patient services.

PHM fills this gap by linking patients to their healthcare providers through a range of unique healthcare services and products.

* These revenue and Adjusted EBITDA figures are unaudited and may change subject to due diligence and closing procedures. They are intended only as an estimate of trailing twelve month revenue and Adjusted EBITDA of the combined entities and are not meant to convey forward looking information. Adjusted EBITDA is a Non-IFRS measure the Company uses as an indicator of financial health, and excludes several items which may be useful in the consideration of the financial condition of the Company, including interest expense, taxes, depreciation, amortization, stock based compensation, and owner compensation.

Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of PHM and anticipated events or results, are assumptions based on beliefs of PHM's senior management as well as information currently available to it. While these assumptions were considered reasonable by PHM at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including 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, low profit market segments as well as general economic, market and business conditions, and could differ materially from what is currently expected.

Neither 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.

This press release does not constitute and the subject matter hereof is not, an offer for sale or a solicitation of an offer to buy, in the United States or to any "U.S. Person" (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "1933 Act")) of any equity or other securities of PHM. The securities of PHM have not been registered under the 1933 Act and may not be offered or sold in the United States (or to a U.S. Person) absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act.

Contact Information

  • Patient Home Monitoring Corp.
    Michael Dalsin
    (323) 253-3055