SAFS 2.42ex RTNH SEC investigation news send the stock to low 1.60 yesterday, from 4.80 open in just 15 minutes.WoW.Some shorts made some fast $$ on it. (COMTEX) B: Safescript Pharmacies, Inc. Announces and Addresses SEC Invest
B: Safescript Pharmacies, Inc. Announces and Addresses SEC Investigation; Edward
LONGVIEW, Texas, Feb 03, 2004 /PRNewswire-FirstCall via Comtex/ -- Safescript
Pharmacies, Inc. (OTC Bulletin Board: SAFS) announced that it has been notified
that the Securities and Exchange Commission may commence an enforcement action
against the Company and certain executive officers for alleged violation of the
Securities Act of 1933 and the Securities Exchange Act of 1934. The Company
believes that the investigation arose principally from the past recognition of
revenue from sales of certain market territories. The Company is cooperating
fully with the SEC in its investigation and has appointed a committee,
consisting exclusively of independent directors, to fully investigate these
matters.
Safescript's Board of Directors accepted the resignations of Mr. Curtis Swanson,
the Chief Executive Officer and a Director, Mr. Steve Cavender, the Chief
Financial Officer, and Mr. Curtis Borman, a Director and a market partner of the
Company. The Board of Directors has appointed Mr. Ed Dmytryk CEO and has elected
Mr. Dmytryk and Dr. Kenneth Reesor to fill the vacancies on the Board of
Directors. Dr. Reesor and Mr. Gilliam, an existing Director, were appointed to
the independent committee responsible for the investigation of these matters.
The Company does not currently have Director and Officer insurance.
Mr. Dmytryk has been involved in numerous public and private restructuring,
transition and compliance assignments since 1980. Prior to joining Safescript,
Mr. Dmytryk was a member of the board of directors and the acting CFO of Park
City Group, Inc., a public spin-off from Fields Cookies, Inc., responsible for
bringing the company into compliance with federal reporting requirements
following its restructure. In July 2003, Mr. Dmytryk joined Safescript to
oversee the integration of the Medex Pegasus acquisition and again to oversee
the recent merger of Advanced Pharmacy Solutions, Inc. During his 6-month tenure
at Safescript, Mr. Dmytryk has been directly responsible for the divisions that
represent more than 75 percent of the Company's current revenues.
Dr. Kenneth Reesor is an orthopedic surgeon based in Longview, Texas. He was the
first healthcare professional to adopt the use of the Safescript technology and
regularly uses the Safescript system to transmit prescriptions to the Longview,
Texas, pharmacy owned by the Company.
Safescript Pharmacies, Inc. (f/k/a RTIN Holdings, Inc.) is a medical
communications technology company that has developed a proprietary wireless
communication system for transmitting prescription medication scripts from
healthcare professionals to a dedicated pharmacy. During 2001 and 2002, the
majority of revenues reported by the Company were attributed to the sale of
territories to investors who were licensed to use the proprietary technology
within the territory in exchange for a one-time license fee, an agreement to pay
a per store assistance fee, and a royalty fee based on the gross revenues of
pharmacies operated by the investor.
During 2003, the Company transitioned from generating the majority of its
revenue from license fees through the sale of market territories to producing
revenue from operating company-owned pharmacies. Since the beginning of 2003,
Safescript Pharmacies, Inc. grew from three company-owned pharmacies to 15
company-owned and 6 market partner-owned pharmacies today. During this period,
membership expanded from 10 prescribing doctors and 765 patients to 349
prescribing doctors (with 40 additional doctors in queue) and over 76,000
patients. Total prescriptions filled by Safescript pharmacies during the month
of January 2004 aggregated nearly 36,000 compared to 3,700 in January 2003.
Moreover, as the Company fully integrates its recent acquisition of Advanced
Pharmacy Solutions, an additional 485 prescribing physicians will be added on
the SafeMed system. The Company has reported six quarters of consistent
sequential revenue growth from its company-owned pharmacies. Revenue from its
company-owned pharmacies has grown from $107,550 during the second quarter of
2002, when if first started generating revenue from this source, to $4.8 million
during its most recently reported quarter ended September 2003.
CONFERENCE CALL
The new management team of Safescript Pharmacies Inc. has scheduled a conference
call with the investment community for 10:30 a.m. (ET) today.
Conference Call Details:
Date/Time: Tuesday, February 3, 2004 -- 10:30 a.m. (ET)
Telephone Number: 800-340-9137
Reservation Number: 5366289
It is recommended that participants phone-in at least 10 minutes before the call
is scheduled to begin. A replay of the conference call in its entirety will be
available approximately one hour after its completion for 48 hours by calling
800-642-1687 and entering the above reservation number.
About Safescript Pharmacies(TM), Inc.
Safescript Pharmacies, Inc. is a public holding company with four operating
subsidiaries, Safe Med Systems, Inc., Safescript Holdings, Inc., Pegasus
Pharmacies, Inc. and Advanced Pharmacy Solutions, Inc. Safe Med Systems, Inc. is
a medical communications/technology company that provides state-of-the-art,
prescription units loaded with patent-pending software and secure, broadband
wireless technology. Safescript Holdings, Inc. and Pegasus Pharmacies, Inc.
operate the preferred retail pharmacy providers that specialize in filling
prescriptions generated by the Safe Med Systems technology. Advanced Pharmacy
Solutions, Inc. is closed specialty pharmacy system that delivers psychotropic
drugs to community and mental health centers. For additional information please
visit our websites at www.safescriptinc.com .
Certain statements in this news release may constitute "forward-looking"
statements within the meaning of section 21E of the Securities and Exchange Act
of 1934. The Company believes that its expectations, as expressed in these
statements are based on reasonable assumptions regarding the risks and
uncertainties inherent in achieving those expectations. These statements are
not, however, guarantees of future performance and actual results may differ
materially. Some of the factors that may affect the forward looking statements
in this news release are the rate of acceptance of new versions of proprietary
software, the availability of personnel to present new software to users and the
availability and functionality of competitive systems. Other risk factors are
listed in the most recent Annual Report on Form 10-KSB and Quarterly Report on
Form 10-QSB filed with the Securities and Exchange Commission. Such
forward-looking statements involve risks, uncertainties, which may cause the
actual results, performance, or achievement expressed or implied to differ.
Contact: Ed Dmytryk
Chief Executive Officer
Safescript Pharmacies, Inc.
903-295-6800
investorrelations@safescriptpharmacies.com
Or
Yvonne L. Zappulla
Managing Director
Wall Street Investor Relations Corp.
212-681-4108
Yvonne@WallStreetIR.com
SOURCE Safescript Pharmacies, Inc.
CONTACT: Ed Dmytryk, Chief Executive Officer of Safescript Pharmacies,
Inc., +1-903-295-6800, or investorrelations@safescriptpharmac
Yvonne L. Zappulla, Managing Director of Wall Street Investor
+1-212-681-4108, or Yvonne@WallStreetIR.com , for Safescript
URL: prnewswire.com
safescriptinc.com
Copyright (C) 2004 PR Newswire. All rights reserved.
-0-
KEYWORD: Texas
INDUSTRY KEYWORD: HEA
MTC
CPR
TLS
OTC
SUBJECT CODE: LAW
PER
OTC
*** end of story *** |
