Friday June 11, 1:04 pm Eastern Time
Company Press Release
Recovery Network, Inc. Closes Financing
SANTA MONICA, Calif.--(BUSINESS WIRE)--June 11, 1999--Recovery Network, Inc. (OTC BB:RNET - news) - to be renamed RnetHealth.com, Inc. (following shareholder approval) - today announced that the Company closed on the first traunch of a $2 million private placement. The terms of the institutional private placement provide for common shares to be issued to the institutional buyers at a price of $1 per share. The Company does have further benchmarks to achieve in order to draw down additional monies in connection with the financing. Additional details of the transaction were not disclosed.
About Recovery Network
Recovery Network, Inc. (the ''Company'') (OTC BB:RNET - news) is a digital media company drawing on the converging digital technologies of the Internet and cable television to deliver alternative and behavioral health programming, products and services to a national audience.
The Recovery Network cable television programming service reaches approximately 5.0 million cable households. The Recovery Television Network will serve to market and drive traffic to the Company's web site, thereby enhancing e-commerce revenue generation opportunities including sales of books, tapes, herbs and vitamins, tele-counseling services, and other behavioral health programming, services and products ideally suited to its target audience.
RnetHealth.com, the internet operation, will provide a branded, integrated, Web-based solution via a public platform for consumers, as well as, a business to business platform for the administrative, communications and information needs of managed care companies, insurance companies and employers.
The Company's primary market is those impacted by social and behavioral health issues (i.e. substance abuse, domestic violence, depression, eating disorders, et al) that are interested in traditional and alternative solutions. This market represents over 100 million Americans at a cost to the economy in excess of five hundred billion dollars annually in increased health care expenses, crime and lost productivity.
Recovery Network's National Partnership for Recovery and Prevention (NPRP) consists of over 50 prominent national health, recovery and prevention organizations that represent over 40 million people throughout the United States.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions, and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission. |
