Prospect Medical Holdings Registration Statement Declared Effective by the Securities and Exchange Commission.CULVER CITY Culver City, city (1990 pop. 38,793), Los Angeles co., S Calif., a residential suburb of Los Angeles; inc. 1917. It is a center of the U.S. motion-picture industry, whose roots in the city date to c.1915. Its chief manufactures are rubber products and computers. , Calif. -- Prospect Medical Holdings, Inc. (AMEX AMEX See: American Stock Exchange :PZZ) ("Prospect"), a managed care management company serving 10 affiliated Independent Physician Associations ("IPAs") in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, , announced that on July 27, 2005 the Securities and Exchange Commission declared effective its registration statement on Form S-1. The S-1 registers 2,718,284 shares of common stock issued or issuable on conversion of the Company's Series A 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". ("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. "). Under the terms of the Preferred Stock, all outstanding shares of Preferred Stock automatically converted into a like number of shares of common stock when the S-1 registration statement became effective. This automatic conversion of Preferred Stock did not require any action or consent by the holders of the Preferred Stock. As a result of the conversion, all stock certificates representing outstanding shares of Preferred Stock are now deemed to represent a like number of shares of common stock. In addition, the Company's outstanding warrants to purchase 453,047 shares of Preferred Stock at $5.50 per share now entitle the holders of the warrants to purchase a like number of shares of common stock. As of May 9, 2005, as disclosed in the Form 10-Q Form 10-Q See 10-Q. filed by the Company with the SEC on May 16, 2005, Prospect had 4,677,882 common shares outstanding, which included some shares issued previously upon voluntary conversions of Preferred Stock. With yesterday's automatic conversion of the remaining shares of Preferred Stock, the Company now has 6,640,362 common shares outstanding. Dr. Jack Terner, Chairman and Chief Executive Officer of Prospect, commented, "We are pleased to have met our responsibility to the holders of our Preferred Stock. As previously disclosed, each share of the Preferred Stock would automatically convert into one share of common stock when Prospect obtained a listing for its common stock on a national securities exchange and also obtained an effective registration statement covering the resale of common stock underlying our Preferred Stock. We met the first requirement when our common stock became listed on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. on May 9, 2005. This S-1 being declared effective fulfills the second, and final, requirement." ABOUT THE COMPANY Prospect Medical Holdings, Inc. is a health care management services organization management services organization Physician practice management company Medical practice An organization contracted by a health care provider/supplier to furnish administrative, clerical, and claims processing functions of the provider/supplier's practice. that provides management services primarily to affiliated IPAs. IPAs are professional corporations that contract with independent physicians and other health care providers to create a medical panel of primary care and specialist physicians, and other health care service providers, capable of providing the full range of medical services to individuals enrolled in health maintenance organization ("HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, ") managed care health plans. Prospect's 10 IPAs are comprised of approximately 4,000 primary care and specialist physicians serving approximately 180,000 HMO enrollees at March 31, 2005. |
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