America Service Group Inc. Announces $4.6 Million Private Placement of Common Stock; Company Receives Notification Of Awards For $15 Million Of Additional Business.Business Editors & Health/Medical Writers NASHVILLE, Tenn.--(BW HealthWire)--Aug. 16, 2002 America Service Group Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ASGR ASGR America Service Group Inc. ASGR Armed Services Graves Registration Office ) announced today that it has entered into definitive purchase agreements to raise gross proceeds of approximately $4.56 million in a private placement financing of common stock with several institutional and other accredited investors. America Service Group has agreed to sell a total of 480,000 shares of newly issued common stock at $9.50 per share. Jefferies and Company, Inc. served as placement agent. The Company intends to use net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from this private placement for repayment of debt. The Company intends to file with the Securities and Exchange Commission ("SEC") a resale registration statement on Form S-3 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the privately placed shares. The closing of the private placement will occur shortly after the SEC informs the Company of its willingness to deem effective the resale registration statement relating to the shares. The shares of common stock have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold absent registration or an applicable exemption from registration. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state. Any offering of ASGR shares under the resale registration statement will be made only by means of prospectus. Michael W. Taylor, senior vice president and chief financial officer, commented, "This transaction accomplishes several objectives. It strengthens our balance sheet, reduces debt levels and provides added flexibility as we refinance our current debt facility, which expires April 1, 2003." The Company's announcement of second quarter results on July 23, 2002, reported ten new contract awards during the first six months of 2002 with combined annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenues of approximately $18 million. Since then, the Company has received additional notifications of award for two new contracts with combined annualized revenues of approximately $4 million and an expansion of its existing State of Virginia contract for an approximate $11 million of additional annualized revenues. America Service Group Inc., based in Brentwood, Tennessee Brentwood is a city in Williamson County, Tennessee, United States. The population was 23,445 as of the U.S. Census Bureau's 2000 census, and as of 2007, Brentwood's population has increased to over 30,000. Brentwood is an affluent Nashville suburb. , is the leading provider of correctional healthcare services in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . America Service Group Inc., through its subsidiaries, provides a wide range of healthcare and pharmacy programs to government agencies for the medical care of inmates. This press release may contain "forward-looking" statements made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. As such, they involve risk and uncertainty that actual results may differ materially from those projected in the forward-looking statements. A discussion of the important factors and assumptions regarding the statements and risks involved is contained in the Company's filings with the Securities and Exchange Commission. These forward-looking statements are made as of the date of this release. The Company assumes no obligations to update or revise them or provide reasons why actual results may differ. |
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