LAFAYETTE, LOUISIANA--(Marketwired - Jan. 12, 2017) -
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Patient Home Monitoring Corp. ("PHM" or the "Company") (TSX VENTURE:PHM), a healthcare service company with operations in the U.S., announced today the next step in separating the Company has been completed. The Company has executed the purchase and sale agreements as well as the arrangement agreement with Viemed Healthcare, Inc. ("Viemed"), currently a wholly owned subsidiary of PHM which will be spun-out as a separate public company that will own a 100% interest in Home Sleep Delivered, L.L.C. and Sleep Management, L.L.C. (the "Sleepco Subsidiaries"). Concurrently, with closing PHM will be renamed Apparo Home Care, Corp.
The next steps in the process to finalize the split will be to receive regulatory approval from multiple agencies, including the TSX Venture Exchange. The Company expects that all documents will be submitted to the agencies in January 2017, and expects to call for a shareholder vote after receiving such approvals. The Company expects to file its Management Information Circular and call for this meeting during the quarter ended March 31, 2017.
Viemed Division Update
The Sleepco Subsidiaries have continued their organic growth during the first quarter and currently estimate that its active patient count has increased approximately 25% from May 2016 when the operating divisions were being implemented. The Sleepco Subsidiaries have continued to expand through organic growth by entering four new areas and currently pursuing operations in two new U.S. states.
The Sleepco Subsidiaries have continued to increase their efficiencies and had the highest monthly cash collections for the year during November 2016. The recent passing by the U.S. Congress of the 21st Century Cures Act should add approximately CAD$150,000 to cash collections after the resubmission process is completed.
Apparo Division Update
The entities that will make up Apparo (PHM less the Sleepco Subsidiaries) have continued to make strides in the rationalization of its various business units. In addition to decreasing its cost structure and improving its accounts receivable collection, such entities have recently streamlined the management of its enterprise-wide direct sales efforts. Additionally, the recent centralization of purchasing has allowed it to enhance its strategic relationships with select suppliers resulting in price concessions and significant credit facilities on high quality products to serve its core patient base.
Timing of Year-End Results
The Company is close to completing the audit of its year-end results and expects to post results on SEDAR during the week of January 23, 2017. The Company expects to have goodwill impairments at multiple subsidiaries as a result of the limited profits during the last year, but those will not have any impact on its cash balance.
"We are pleased that we have taken another step in the right direction to separate the companies and drive long-term shareholder value," said Casey Hoyt, CEO of PHM. "With the Company's focus on daily efficiencies we have seen our cash balance grow since our last update and with the recent Cures Act passage, we expect to see a nice benefit to our liquidity in the next quarter."
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 company that serves patients with heart disease and other chronic health conditions, this operation is a platform for acquisitions and organic growth. 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. 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.
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 completion of the proposed transaction and any transactions associated therewith (including the estimated timing of completion),the submission of all documents related to the spin-out in January 2017, the filing of a Management Information Circular and calling of a meeting during the quarter ended March 31, 2017, the recent passing of the 21st Century Cures Act adding approximately CAD$150,000 to cash collections after a resubmission process, and PHM seeing a nice benefit to its liquidity in the next quarter as a result of the Cures Act, 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, including, the documentation being finalized and ready to submit to regulatory bodies in January 2017, regulatory approvals being obtained in sufficient time to call a shareholders' meeting and file a Management Information Circular by March 31, 2017, the Exchange approving the proposed transaction and the listing of the shares of Viemed and Apparo, shareholders of PHM approving the proposed transaction and the approval of other securityholders of PHM not being required or if required being obtained, and the cash impact of the 21st Century Cures Act being calculated off of historical fee schedules and received from CMS in a timely manner. 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 credit, market (including equity, commodity, foreign exchange, and interest rate), liquidity, operational (including technology and infrastructure), reputational, insurance, strategic, regulatory, legal, environmental, capital adequacy, and other risks.
Examples of such risk factors include the general business and economic conditions in the regions in which PHM operates; the ability of PHM to execute on key priorities, including the successful completion of acquisitions, business retention, and strategic plans and to attract, develop and retain key executives; difficulty integrating newly acquired businesses; the ability to implement business strategies and pursue business opportunities; low profit market segments; disruptions in or attacks (including cyber-attacks) on PHM's information technology, internet, network access or other voice or data communications systems or services; the evolution of various types of fraud or other criminal behaviour to which PHM is exposed; the failure of third parties to comply with their obligations to PHM or its affiliates; the impact of new and changes to, or application of, current laws and regulations; 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; the overall difficult litigation environment, including in the U.S.; increased competition; changes in foreign currency rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the availability of funds and resources to pursue operations; critical accounting estimates and changes to accounting standards, policies, and methods used by PHM; and the occurrence of natural and unnatural catastrophic events and claims resulting from such events; as well as those risk factors discussed or referred to in PHM's annual Management's Discussion and Analysis for the year ended September 30, 2015, filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. 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.