CliniCorp announces completion of financial restructuring; Dr. Lawrence Markson named chairman and CEO.WEST PALM BEACH, Fla.--(BUSINESS WIRE)--Sept. 27, 1995-- Clinicorp Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :CLNI) announced Wednesday that it raised $2 million in new equity through a private placement and $2.4 million of accounts receivable financing Accounts Receivable Financing A type of asset-financing arrangement in which a company uses its receivables - which is money owed by customers - as collateral in a financing agreement. The company receives an amount that is equal to a reduced value of the receivables pledged. as part of its financial restructuring plan. The company may raise up to an additional $1.5 million in equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. in a second tranche within two weeks. Additionally, the company reached agreements with certain creditors that resulted in debt reduction of approximately $2.5 million in exchange for $465,000 of cash and notes, $400,000 of common stock, and $525,000 of a new Series E Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". . The gain on debt extinguishment will be reported in the second quarter ended Nov. 30, 1995. Also, the company sold Kats Management Services to its prior owners in exchange for the forgiveness of $1.3 million of debt. No gain or loss will result from the sale of Kats. Concurrent with the financing, Dr. Lawrence T. Markson was named chairman and chief executive officer. During the past 15 years. Dr. Markson has been the chairman of Markson Management Services Inc. ("MMS (Multimedia Messaging Service) An enhanced transmission service that enables graphics, video clips and sound files to be transmitted via cellphones. Developed as part of the 3GPP project, MMS phones are generally backward compatible with SMS and EMS. "), a practice management and consulting firm that has rendered services to over 5,000 chiropractic offices. The equity capital consisted of 2 million common shares and 2,000 shares of Series D 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. . The Series D preferred has a mandatory redemption in the amount of $200,000 at no earlier than three years and also has a liquidation preference. Capital Healthcare Financing of Fort Lauderdale, Fla., provided an accounts receivable financing facility of $5 million. The advance is based upon current revenues, currently limited to approximately $2.4 million of which $2 million was drawn down at closing. A hearing on the company's application to have its common stock traded on the 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 SmallCap Marketplace is scheduled for early October. The Common Stock is currently trading over-the-counter under the symbol "CLNI." CliniCorp is a healthcare center owner and management company with corporate headquarters at 1601 Belvedere Road, Suite 500-E, West Palm Beach, Fla. 33406. Telephone 407/684-2225. CONTACT: CliniCorp Inc., West Palm Beach Gerard A. Herlihy, 407/684-2225 |
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