CELL TECHNOLOGY COMPLETES ACQUISITION OF AIR METHODS CORPORATION
DENVER, Nov. 13 /PRNewswire/ -- Cell Technology, Inc. (NASDAQ: CELL) today announced its completed acquisition of Air Methods Corporation, a leading privately held, hospital-based provider of sophisticated emergency air medical transport services and systems.
Headquartered in metropolitan Denver, Air Methods Corporation is the largest, totally dedicated, emergency air medical transport firm in America. Founded in 1980, Air Methods' annualized revenue growth rate throughout the past three years has exceeded 25 percent. The company maintains 15 comprehensive long term agreements serving 37 hospitals in 10 states, employing over 200 persons throughout the U.S. Air Methods' audited revenues for the year ended June 30, 1991 were $15.4 million.
Cell completed the Air Methods acquisition via a tax free reorganization involving the exchange of approximately 3.6 million restricted shares of Cell's common stock for all outstanding common stock of Air Methods. Cell Technology will now be known as "Air Methods Corporation" and has adopted Air Methods' corporate mission statement in connection with the consummation of the transaction.
W. Terrance Schreier, formerly chairman and CEO of Cell Technology, will continue in these capacities of the merged entity, joined by William H. Critchfield, recently appointed executive vice president and chief financial officer. All current Air Methods' officers have been re-appointed to the same positions which they held in Air Methods, continuing in their present operating capacities in the combined entity. In addition, Roy L. Morgan, president and a founder of the firm, has been appointed to the new entity's board of directors, enlarging its current size to six members.
With the completion of this transaction, Air Methods' cash- equivalent assets of approximately $7 million will be used for working capital purposes. The company has already begun exploring various additional financing alternatives to further expand its operating capital base.
W. Terrance Schreier, chairman and CEO, further explained, "Air Methods is the acknowledge quality provider of air medical transportation to America's hospitals. Its aircraft fleet (jet helicopter and fixed wing equipment) are literally high technology, airborne ICU-critical care multi-patient ships, capable of delivering state-of-the-art emergency medical care in trauma and life-threatening circumstances. Market demand for Air Methods' sophisticated emergency medical transportation services and systems has been, and should continue to be, favorably impacted by America's healthcare cost containment environment. We believe that a large number of urban hospitals will increasingly consolidate their metropolitan trauma care centers throughout the 1990's into a series of "mega"-trauma facilities, requiring additional dependable, sophisticated, high-quality emergency air medical transportation services. Similarly, rural tertiary care hospitals will also be required to significantly fortify the scope of emergency care services which they provide to large geographical, less populated, areas in America, further fueling the expansion of the emergency air medical transportation services market."
The company also noted that within the next few weeks, its trading symbol will be changed from "CELL" to "AIRM" reflecting the incorporation of Air Methods' core business into the newly combined entity. Further, the company's former biotechnology research efforts have been substantially curtailed in anticipation of the completion of this merger. However, certain of its world-wide pharmaceutical licensing partners are expected to continue the clinical development of ImuVert, the company's anticancer biological which completed advanced human clinical trials in the U.S. earlier this year. As previously announced, Air Methods Corporation will focus its operations entirely within the hospital-based emergency air medical transportation marketplace.
/CONTACT: W. Terrance Schreier, chairman and CEO, or William H. Critchfield, executive vice president and CFO, 303-443-8155; Roy L. Morgan, president, or Marty L. Martin, executive vice president- operations & safety assurance, 303-790-0587, all of Cell Technology/
(CELL) CO: Cell Technology, Inc. ST: Colorado IN: MTC SU: TNM SM-OS -- NY010 -- 3809 11/13/91 09:48 EST