American Hospital Resources Announces Debt Reduction Agreements.Business Editors/Health/Medical Writers SANTA ANA, Calif.--(BUSINESS WIRE)--Oct. 7, 2003 American Hospital Resources, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AMHR AMHR American Miniature Horse Registry )(Berlin (WKN WKN Wertpapier-Kenn-Nummer (identifying number assigned to securities traded in Germany) WKN Warrior Knowledge Network (US Army) ) 913541) today announced that the Company completed a series of agreements to convert $1,157,000.00 in payables and accrued expenses to a combination of non-trading Class C Preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. valued at $5.00 per share and restricted common stock. Christopher Wheeler, the founder and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of American Hospital Resources, said, "We are very pleased that many of AMHR's obligations have been converted to equity in the Company. This conversion from debt to equity will have a very positive effect on the Company's balance sheet and will add more than $1 million in shareholder equity. The confidence expressed by this transaction mirrors our own belief in the growth of AMHR." A recent AMHR press release detailed the signing of a letter of intent to acquire one of California's largest closed door pharmacies. This acquisition candidate is a non-retail pharmacy specializing in providing Physician Prescribed Nutritional Supplements Nutritional Supplements Definition Nutritional supplements include vitamins, minerals, herbs, meal supplements, sports nutrition products, natural food supplements, and other related products used to boost the nutritional content of the diet. for predominantly Medi-Cal patients. AMHR's due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. team has started the process of reviewing financial records and operational structure. The current client base of approximately 900 is located throughout the State of California and is serviced by four branch offices. This streamlined operation is a model that can be used to expand the California business and as a template to establish operations in other states. A license was recently obtained to allow them to expand into the State of Washington. Preliminary unaudited 2002 financial data shows annual revenue of approximately $3.5 million with an annual EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of approximately $1 million. Chris Wheeler went on to say, "The providing of physician prescribed nutritional supplements to patients at home as well as alternate care settings is a growing segment of the healthcare market. The value of this service as a component in our pharmacy rollup strategy could be substantial. We are looking forward to working with this seasoned team of professionals." American Hospital Resources is a healthcare services company that provides pharmacy services to long-term care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. providers and specialty hospitals as well as other acute care consulting and management services. We are currently focusing on the acquisition and consolidation of profitable pharmacy outsourcing businesses. These consolidated pharmacy outsourcing companies provide pharmacy management services and pharmaceutical supplies predominantly to long-term care facilities such as nursing homes and hospices. As part of our business strategy, we have structured a program designed to merge profitable regional pharmacy outsourcers into a national team. We believe these regional providers will benefit from the enhanced buying power and market presence of a consolidated healthcare entity. Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risk and uncertainties, including but not limited to economic, competitive, governmental, political and technological factors affecting the Company's revenues, operations, markets, products and prices and other factors discussed in the Company's various filings with the Securities Exchange Commission. |
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