Millstream Acquisition Corporation was the first of the current crop of blank check IPOs to complete a public offering. On August 31, 2004, it also became the first to complete an acquisition, closing on the acquisition of NationHealth, Inc., a company “ founded in 2002 to improve the healthcare of Americans including Medicare and managed care beneficiaries by providing medical products and prescription discount services. The Company offers a discount prescription card, accepted at over 48,000 pharmacies nationwide, which now has over 2,000,000 members. In addition, NationsHealth provides home delivery of diabetes, respiratory and ostomy medical products to approximately 110,000 of its patients. NationsHealth is also the provider of diabetes supplies for Medicare beneficiaries at over 1,000 Kmart pharmacies.”
Millstream issued 21,375,000 shares to the stockholders of NationsHealth, equal to an 81.7% interest in the company. The transaction was accounted for as a reverse merger.
The transaction was announced on March 9, 2004. The common shares, trading at $5.00 prior to the announcement of the transaction, bounced as high as $8.20 before settling back to $6.90 as of December 31. The warrants and units, trading at $.78 and $6.50 respectively, traded as high as $3.19 and $14.80, before settling back to $2.08 and $10.10 at the end of the year.
NationsHealth’s securities are now traded on the Nasdaq SmallCap Market.
The third quarter results:
biz.yahoo.com
NationsHealth Announces Third Quarter Results
Wednesday November 10, 4:38 pm ET
SUNRISE, Fla.--(BUSINESS WIRE)--Nov. 10, 2004--NationsHealth, Inc.® (NASDAQ:NHRX - News) today announced financial results for its third quarter ended September 30, 2004.
Net revenue for the third quarter of 2004 was $20.1 million, up 261% over the third quarter of 2003 and up 8% over the second quarter of 2004. The third quarter net loss was up 7% year-over-year, to $888,000, but down 79% from the preceding quarter.
Glenn M. Parker, M.D., NationsHealth, Inc.'s Chief Executive Officer, commented, "The completion of the merger between NationsHealth Holdings, L.L.C. and Millstream Acquisition Corporation on August 31st represents an important milestone for our Company. By adding approximately $9.8 million of cash for working capital purposes, the merger enables us to further execute our initiatives to continue growing the business. However, prior to the closing date, the Company had limited capital resources, and as such, we scaled back our marketing efforts in the first two months of the current third quarter, which resulted in slower growth in the quarter. Still, we achieved sequential quarterly revenue growth and were able to limit the operating loss. Recently, we have begun to deploy our additional capital and broaden our marketing efforts, the benefits of which we expect to realize beginning in the fourth quarter and more significantly in the first quarter of next year. Overall, we expect a ramp up in revenues in fiscal 2005."
Dr. Parker continued, "We are pleased with our progress in our expansion efforts, particularly with respect to our recently launched strategic business relationships with Kmart and managed care organizations. Kmart represents the first success in our retail initiative and has added approximately 5,000 new customers for our diabetes supplies. These new Kmart customers will begin adding to our revenue base in the fourth quarter of 2004. We have also begun offering our diabetes, respiratory and ostomy supplies through managed care organizations, which should add to our revenues beginning in early 2005. "
About Nationshealth (www.nhrx.com)
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