National Health Announces Asset Sale; Interim Financing Motion
Monday, July 12, 1999 08:15 AM
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WARMINSTER, Pa., July 12 /PRNewswire/ -- National Health and Safety Corporation (OTC Bulletin
Board: NHLT) announced today that it has entered into an Asset Purchase Agreement with MedSmart
Healthcare Network, Inc., of Dallas, Texas.
Under the Agreement, MedSmart will purchase the POWERx division of National Health (NHS),
resulting in expanded financing and internet exposure for POWERx, and reducing current NHS
operating expenses by at least 80%. MedSmart will also bring sophisticated credit processing to the
POWERx product, according to company sources, enabling the POWERx product to be more widely
distributed at a lower price.
Under the plan, NHS will receive royalties equal to about 20% of net revenues earned from new
POWERx memberships. POWERx is a large national network of doctors, hospitals, pharmacies,
dentists and other providers which have agreed to provide discounts of up to 50% to POWERx
members.
Simultaneously, NHS announced that it has filed a motion in the U.S. Bankruptcy Court for financing of
up to $350,000 to ensure the ability of the company to continue effective operations during the
reorganization process. NHS filed for reorganization under Chapter 11 on July 1, 1999.
"We have now taken the first three steps in our planned reorganization of NHS," said Dr. R. Dennis
Bowers, company president. Bowers said the company expects that the sale of POWERx to
MedSmart will result in increased shareholder value, and that additional steps of the reorganization will
be announced within the next 10 days.
Safe Harbor Statement
Investors should carefully consider the preceding information as well as other information contained in
this press release before making an investment in the Common Stock. Information contained in this
press release contains "forward-looking statements" which can be identified by the use of
forward-looking terminology such as "believes," "expects," "may," "should," or "anticipates" or the
negative thereof or given that the future results covered by such forward-looking statements will be
achieved. The preceding matters constitute cautionary statements identifying important factors with
respect to such forward-looking statements, including certain risks and uncertainties that could cause
actual results to vary materially from the future results covered in such forward-looking statements.
Other factors could also cause actual results to vary materially from the future results covered in such
forward-looking statements.
SOURCE National Health and Safety Corporation
CONTACT: Kerri Millar of National Health and Safety Corporation, 215-442-0926
Quote for referenced ticker symbols: NHLT
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