Caprius Sells Its Interest in Rehabilitation Center.WILMINGTON, Mass.--(BUSINESS WIRE)--March 12, 1999--Caprius, Inc. (Nasdaq:CAPR CAPR Colegio de Abogados de Puerto Rico (Spanish) CAPR Civil Air Patrol Regulation CAPR Computer Assisted Pipeline Review CAPR Capability Requirement CAPR Capability Request ) announced today that it has concluded a transaction for the transfer of its interest in its Rehabilitation rehabilitation: see physical therapy. Center to a limited liability company headed by Dr. Mitchell Clionsky, the current Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of the Center. Under the terms of the agreement, the Company's interest will be transferred over time as payments totaling $900,000 are made. $850,000 of this sum shall be paid on or before July 1, 1999. In addition, the acquiring group shall assume certain liabilities totaling approximately $400,000 and will be entitled to 10% of any financial recovery obtained from a pending lawsuit by the Company against the principal of the former owner of the center. A decision handed down late last week by the Massachusetts Supreme Judicial Court The Massachusetts Supreme Judicial Court (SJC) is the highest court in the Commonwealth of Massachusetts. The SJC has the distinction of being the oldest continuously functioning appellate court in the Western Hemisphere. , Dominguez versus Liberty Mutual Insurance Company, cast a potentially detrimental effect on the rehabilitation centers' prospects and a negative impact on the value of the account receivables. The Court decision affects rehabilitation services supplied to motor vehicle accident motor vehicle accident Public health A morbid condition that kills 45,000/yr–US; 60% are < age 35; MVAs account for 500,000 hospitalizations and most 20,000 spinal cord injuries, at a cost of $75 billion/yr victims where no fault insurance laws apply, as in Massachusetts. The uncertainty generated by this decision coupled with a financial obligation to pay a note for which the center was obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. militated towards a swift conclusion of the transaction. The transfer price of $900,000 will be used in part to pay a balance of approximately $360,000 to the former owner of the Center, which is the remaining amount due from the Company's acquisition of its interest in the Rehabilitation Center. The Company further announced that a hearing has been scheduled in late April by Nasdaq to review the Company's plans and prospects to avoid delisting. 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 made in this press release that are not historical fact are "forward-looking statements" which are based upon current expectations that include a number of risks and uncertainties. Factors that could cause actual results to differ materially from the forward-looking statements include meeting ordinary and customary closing conditions, delays in product development, lack of market acceptance of technology, technological innovations of competitors and changes in health care regulations, including reimbursement programs. |
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