American HealthChoice Announces Confirmation of Plan.Business Editors IRVING, Texas--(BUSINESS WIRE)--Aug. 21, 2000 American HealthChoice, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AHIC AHIC American Health Information Community ) today announced that the Company's Amended Plan of Reorganization was confirmed by the United States Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. on August 8, 2000. On or before September 30, 2000, as provided in the Plan, the Company will make initial payments to creditors. These payments will not have a material impact on cash flow. In addition, the Company will deliver 20,475,000 shares of common stock to an Escrow Agent escrow agent n. a person or entity holding documents and funds in a transfer of real property, acting for both parties pursuant to instructions. Typically the agent is a person (commonly an attorney), escrow company or title company, depending on local practice. (See: escrow) , who will transfer shares to the Debenture Holders after receipt of a conversion notice. These shares will not be included in outstanding shares, nor will they be in the public float until a conversion notice is received by the Escrow Agent. An important provision of the Plan is the acquisition of three established clinics with expected gross annual revenue of $5,000,000 and expected cash flow of approximately $1,500,000. The purchase price is approximately $6,000,000 with $900,000 in cash at closing and the remainder in common stock. If annual cash flow targets are not achieved over a three year period, a portion of the stock will be returned to the Company. Since the shares to be issued for the acquisition are restricted, they will not be included in the public float for at least one year. Dr. Stucki also stated, "We are pleased with our financial results for the nine months ended June 30, 2000, which shows profit in each of the three quarters in the fiscal year ended September 30, 2000. The financial results of the three clinics being acquired will be reported by American HealthChoice effective September 1, 2000." American HealthChoice, Inc. is a provider of healthcare services and operates primary care clinics located in Texas and Louisiana. Its stock is quoted on the OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. under the symbol "AHIC." "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. " Statement: The statements in this release that relate to future plans, expectations, events, performance, and the like are forward-looking statements within the meaning 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 and the Securities Exchange Act of 1934. Actual results or events could differ materially from those described in the forward-looking statements due to a variety of factors, including those set forth in the company's report on Form 10-KSB for fiscal year 1999 filed with the Securities and Exchange Commission. |
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