Complete Wellness Centers Inc. Closes Purchase of Assets of AIIA Managed Care Inc.WASHINGTON, D.C.--(BUSINESS WIRE)--July 23, 1998--Complete Wellness Centers, Inc., ("CWC CWC Chemical Weapons Convention CWC Cricket World Cup CWC Central Wyoming College CWC Ceylon Workers' Congress (trade union; Sri Lanka) CWC Ceylon Workers Congress (Sri Lanka) ")(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 SCM (1) (Software Configuration Management, Source Code Management) See configuration management. (2) See supply chain management. : CMWL,CMWLW) a multi-disciplinary physician practice management company, announced today that it has completed the purchase of the assets of AIIA AIIA Australian Information Industry Association AIIA Australian Institute of International Affairs AIIA Associazione Italiana per l'Intelligenza Artificiale AIIA Associazione Italiana di Ingegneria Antincendio (Milan, Italy) Managed Care, Inc. ("AIIA") for 20,000 five year warrants, exercisable into CWC common stock at $3.31 per share. In a related announcement, CWC reported that it has entered into a Letter of Intent to establish Optimum PPO PPO abbr. preferred provider organization PPO Managed care Preferred provider organization, see there Infectious disease Pleuropneumonia-like organism, see there , Inc. ("OPPO OPPO Opposition "), which will be owned 70% by CWC and 30% by Optimum Health Services health services Managed care The benefits covered under a health contract , Inc., ("OHS") which is now CWC's 86.67% owned subsidiary. Upon closing of the transaction establishing OPPO, CWC will transfer the assets of AIIA to OPPO for which OHS has agreed to pay CWC $12,000 in the form of a note for its 30% ownership. The transaction described in the Letter of Intent relates to the announcement made by CWC on May 15, 1998, regarding CWC's plan to spin- off the operations of OHS. In connection with the proposed spin-off, CWC will issue a dividend to its shareholders of record as of May 13, 1998 in the form of OHS common stock. CWC plans to conduct a Rights Offering enabling its shareholders to purchase shares in OHS. AIIA has developed one of the nation's first specialty provider networks specializing in Worker's Compensation. Today, the AIIA network is comprised of over 2200 chiropractic chiropractic (kīrəprăk`tĭk) [Gr.,=doing by hand], medical practice based on the theory that all disease results from a disruption of the functions of the nerves. physicians in 37 states. AIIA, a premier organization in chiropractic utilization management, has special expertise in chiropractic claim review owing in great part to its extensive database of chiropractic medical claims. According to C. Thomas McMillen, CWC's Chairman & 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. , "The AIIA acquisition should provide OPPO with a national alternative health care presence and the ability to rapidly expand its alternative healthcare delivery system. Jason M. Patchen, OHS' President and CEO, said, "This acquisition will allow us to meet customers' demand for access across broad geographic regions. With AIIA, we will be able to provide services almost anywhere in the country." Complete Wellness Centers, Inc., a multi-disciplinary health services company, develops traditional and alternative provider networks, integrated medical centers, and related products focused on patient wellness. Its common stock and warrants trade on the NASDAQ Small Cap market under the symbols, CMWL and CMWLW, respectively. This release contains forward-looking statements regarding the plans or objectives of the Company for future operations, including the development of the multi-disciplinary medical centers. The forward- looking statements included herein are based on current expectations that involve some uncertainties. Actual results may differ materially from those projected in such forward-looking statements.
CONTACT: Complete Wellness Centers, Inc.
C. Thomas McMillen, Chairman and CEO, 202/639-9700
or
The Equity Group Inc.
Linda Latman, 212/836-9609
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