Patient Home Monitoring Corp.

September 19, 2013 09:00 ET

Patient Home Monitoring (PHM) Closing Hollywood Healthcare Corporation (HHC) Acquisition, Significantly Increasing Revenue and Current Assets

SAN FRANCISCO, CALIFORNIA--(Marketwired - Sept. 19, 2013) - Patient Home Monitoring (PHM) (TSX VENTURE:PHM), a profitable company focused on rolling-up annuity-based healthcare service companies in the US and Canada, today announced it is closing the acquisition of HHC.

With the acquisition, PHM gains access to thousands of patients and additional pharmacy channels. HHC specializes in supporting pharmacies through sales of diabetes supplies, immunosuppressant specialty pharmaceuticals and influenza shots. HHC has experienced strong patient growth in 2013.

Terms of the Acquisition

PHM is acquiring the stock of HHC, which has assets that include approximately $1,500,000 in cash, A/R and inventory. PHM will assume $50,000 in debt in a note at 4% interest and $150,000 in debt in the form of a 3-year note at 8% interest convertible in to PHM common stock at 26 cents at the holder's option.

PHM has paid $550,000 in cash and will issue 2,771,853 common shares in PHM as payment for the acquisition for a total of approximately $1,300,000 as the initial payment. The transaction also includes a deferred cash payment of up to an additional $466,000 if the seller meets performance milestones after the close.

"Closing the HHC deal is expected to more than double PHM's monthly revenue in October of 2013 to over $680,000 while continuing to increase our annual EBITDA", said Bob Kusher, CEO of PHM. "Strategically, the HHC acquisition expands our access to patients and provides stronger relationships with partner pharmacies. Our acquisition team has done a superb job in closing this deal. Their experience and knowledge in the US healthcare services space is unparalleled for a company like PHM. All the while, I continue to focus on organic growth post-acquisition. This one-two punch of earnings accretive acquisitions along with a focus on organic revenue growth is aimed at increasing shareholder value."

About PHM

PHM is currently a positive cash flow and profitable company servicing patients with chronic heart disease and will act as a platform for acquisitions. 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 is actively working to identify and evaluate profitable, annuity-based companies to acquire their patient databases and technical expertise at favorable prices. 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. The expected result is growing EPS with each acquisition and growing revenue and profits from the cross selling efforts.

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.

Forward-Looking Statements

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.

Contact Information

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