LaserSight to acquire two ophthalmic practices.
The agreement initially calls for LaserSight to purchase Dr. Schrenk's practice assets in exchange for approximately 144,000 shares of unregistered LaserSight common stock. The number of unregistered common shares is based upon a $9 per share price. Furthermore, the Company will be required at the end of 24 months to issue additional shares, in the event the price of the stock is below $8 per share. The trading price of the stock at closing shall determine the maximum number of potential shares to be issued at the end of the 24 months. LaserSight is to enter into a 25-year service agreement with the physicians to provide management, administrative, and related services. LaserSight will receive a minimum management fee after practice expenses as defined in the agreement and guaranteed by the selling physicians during the first three years of the agreement. The closing is subject to certain due diligence items, which must be satisfied prior to closing. Closing is anticipated to occur in mid- November.
Dr. Schrenk said, "With the changes occurring in health care today and the affect of those changes on the ophthalmic community, it is important to seek out a company that will provide value-added services to strengthen the practice of ophthalmology. I believe partnering with LaserSight gives us the benefit of practice management expertise, and more importantly, access to the history and experience base of its managed care subsidiary, MEC Health Care, for contracting with managed care companies for covered lives."
The acquisition of the practice of Dr. Pizza, a single practitioner, will strengthen and expand the patient base of the Northern New Jersey Eye Institute, a practice acquired by LaserSight earlier in the year. Jack Norris, M.D. of LaserSight said, "This type of purchase is intended to consolidate the market served by the Northern New Jersey Eye Institute. The assets and patient base of the practice transfers to us and the physicians of the Northern New Jersey Eye Institute provide continued care and continued quality services to the residents of our community. This acquisition will expand our patient base and further utilize our ambulatory surgery center, increasing the scope of our practice in our four facilities." Michael R. Farris, president and chief executive officer of LaserSight, said, "Our practice acquisitions are targeted in markets where we are currently bidding significant managed care contracts. Unlike other practice management companies, ours is a strategy focused on covered lives for vision managed care, and we are pleased with these acquisitions as a step in supporting this strategy."
LaserSight Incorporated is a holding company with four operating subsidiaries engaged in the business of laser manufacturing and international sales, third-party vision managed care administration, ophthalmic practice management, and health and vision care consulting services.
CONTACT: Marti Benfield, Investor Relations