SURC news
HOUSTON, Apr 1, 2003 (BUSINESS WIRE) -- SureCare (OTCBB: SURC), a leading
provider in distributed healthcare, today announced progress on certain aspects
of its ongoing restructuring plans.
Milestones accomplished include:
-- SureCare successfully negotiated the termination of its
financing agreement with Cornell Capital. Cornell was
completely paid for all obligations under the agreement, and
has indicated that it does not currently hold any of the
Company's securities.
-- SureCare received debt-to-equity exchange agreements
representing approximately $615,000. The Company anticipates
receiving an additional $250,000 in debt
conversion/forgiveness based on positive verbal commitments
from other creditors who understand the Company's positioning
and unique model in the distributed healthcare industry.
-- SureCare council received a verbal commitment for the
conversion of approximately $63,000 in debt from Medimail,
Inc. This will settle the Company's only open litigation
matter.
-- SureCare implemented further expense reductions, thus allowing
it to be profitable quickly as it emerges from its numerous
restructuring initiatives. Commensurate with the reductions,
Chief Executive Officer, James "Sam" Jarrett and Chairman of
the Board, Robert Teague, submitted their resignations. Grant
M. Gables continues as President of SureCare. Wayne Bertsch,
CPA, maintains his position of Chief Financial Officer.
Allyson Faist, RN MBA, Vice President of Marketing, remains in
her role as SureCare seeks to consummate several new
contracting opportunities. Sheryl Tatar Dacso, J.D. Dr. P.H.
continues General Council for the corporation.
-- SureCare sold off no-essential assets for cash. The proceeds
are being used to fund managed care operations.
-- SureCare signed several new managed care/pharmacy benefit
manager agreements representing significant new revenue and
profit opportunity for the future.
However, there still remains one significant requirement for SureCare to be
successful with its efforts. The Company must satisfactorily resolve the Bayer
Corporation (NYSE: BAY) "lost profits" judgement, as previously announced in the
Company's SEC filings, through the debt-to-equity exchange agreement that have
been accepted by other creditors.
SureCare entered into a payment agreement with Bayer last year in satisfaction
of the judgement and met the terms of that agreement through the end of the
year. In support of the payment agreement, the Company attempted to access the
equity markets to raise the necessary capital to satisfy the terms of the
agreement, and fund future growth. SureCare was unsuccessful with those efforts
largely due to the significant amount represented under the judgment and the
lack of funding available to micro- and small-cap entities through private and
investment banking relationships. SureCare is currently unable to meet the terms
of the payment agreement, thus impairing the Company's ability to operate
efficiently and fund future growth. SureCare recently presented Bayer with the
exchange agreement in the hope that Bayer will follow the lead of the other
creditors, and allow the Company the ability to survive and prosper. SureCare
also offered Bayer the opportunity to participate in its future growth as a
supplier, thus increasing Bayer revenue and profit potential from SureCare
marketing activities.
"Although we have made significant strides with our restructuring plan, it is
imperative to our future that Bayer Corporation agree to our debt-to-equity
exchange offer. With their agreement, we have the opportunity to prosper greatly
in support of recently executed agreements." stated Grant M. Gables, President.
SureCare (www.surecare.md), is a growing distributed healthcare company that
provides cost-savings to healthcare organizations. Distributed healthcare is a
disease-focused linkage of goods distribution with consumer education and
experience, while collecting and distributing important clinical outcomes data.
By providing high quality healthcare resources to the consumer, SureCare seeks
to reduce the cost of chronic diseases while improving the consumers'
experience. SureCare is also licensed as a durable medical equipment provider
for both the Medicare and Medicaid programs, and has recently received licensure
as a pharmacy in the State of Texas.
This press release contains certain forward-looking statements within the
meaning of the Securities Act of 1933, as amended, and the Securities and
Exchange Act of 1934. Investors are cautioned that all statements included in
this press release which are not historical fact, are forward-looking
statements. Although the Company believes that forward-looking statements
contained herein are reasonable, there can be no assurance that the
forward-looking statements included herein will be correct or accurate. The
inclusion of such information should not be regarded as a representation by the
Company or any other person that the objectives and plans of the Company will be
achieved.
CONTACT: DeMonte Associates
Cynthia DeMonte, 212/605-0525
cdemonte@demonte.com
www.demonte.com |
