I know we've been burned on this before but I'm a heavy buyer today on this news"
HEALTHAXIS ANNOUNCES MANAGEMENT STOCK PURCHASE
EAST NORRITON, PA, — April 6, 2001—Healthaxis, a leading provider of Web enabling software solutions for healthcare payers and intermediaries, today announced that James W. McLane, President and CEO, and 14 other members of its executive and senior management team, and certain current and former directors, have purchased from an unrelated third party 1,035,725 shares of the Company’s common stock in a privately negotiated transaction.
According to Mr. McLane, who personally purchased 250,000 shares, “The recent change in the stock price of Healthaxis created what we believe is a very attractive investment opportunity. With our share price reflecting less than a one-times revenue basis, with our new, highly focused management team, and with the anticipation of executing on our business plan in the markets we serve, we believe our stock is an attractive investment value. The individual commitments made by many members of the senior management team reflect management’s confidence in Healthaxis’ prospects for success.”
The purchase was endorsed by the Board of Directors of Healthaxis, which also approved and implemented a one-time loan aggregating $154,700 to partially assist its management team in purchasing the shares. The loans are subject to a three-year note, collateralized by 100% of the shares purchased, with simple interest at the current prime rate. The purchase was from one shareholder at $0.60 per share. |
