To All: SOURCE: Henley Healthcare, Inc.
Henley Healthcare Completes the Sale of Its Homecare Division to Rehabilicare Inc.
SUGAR LAND, Texas, Aug. 7 /PRNewswire/ -- Henley Healthcare, Inc. (Nasdaq: HENL - news), announced today that it has completed the sale of its Homecare division to Rehabilicare Inc. (Nasdaq: REHB - news). Henley's Homecare division located in Akron, Ohio, has annual revenues of approximately $5 million. The purchase price is being paid in cash. Henley intends to use the cash proceeds from the sale to pay down its revolving debt with its senior lender.
''We are very pleased to have found a purchaser of the quality of Rehabilicare for our Homecare division,'' said Michael M. Barbour, president and chief executive officer of Henley Healthcare. ''The divestiture dramatically reduces our third-party billing receivables, eliminates the need for the related loss reserve and allows us to better focus on our core business of rehabilitation and pain management.''
Rehabilicare designs, manufactures and provides electromedical pain management and rehabilitation products and services used for clinical, sports medicine, home health care and occupational medicine applications. The Homecare division of Henley distributes home electrotherapy products through its direct sales organization with geographic strength in Ohio, Kentucky, West Virginia, Indiana, Pennsylvania, Northern California and Houston, Texas.
Safe Harbor Statement
Included in this release are ''forward-looking statements'' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. There are certain important factors that could cause results to materially differ from those anticipated from the statements made above. These factors include, but are not limited to the approval of this transaction by certain regulatory agencies. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations reflected in such forward-looking statements will prove to have been correct.
Henley Healthcare, Inc., a leader in the growing pain management industry, develops, manufactures and distributes products and related accessories used in the control of acute or chronic pain. Henley's diversified line of non-invasive physical medicine and rehabilitation products are used in the treatment of disabilities or injuries with therapeutic exercise and the application of various heat, Fluidotherapy(R), traction, ultrasound or other modalities. The company is also awaiting FDA approval on its MicroLight 830(TM), a hand-held, low-energy (non-surgical) laser for the treatment of repetitive stress injuries such as carpal tunnel syndrome. For additional information on Henley Healthcare, Inc. please visit their website at www.henleyhealth.com.
SOURCE: Henley Healthcare, Inc.
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