VHGI Holdings, Inc. Announces Intent to Spin-Out Medical Office Software Subsidiary
12/19/2011 8:17:56 AM
FT. WORTH, Texas, Dec. 19, 2011 /PRNewswire/ -- VHGI Holdings, Inc. (OTC.QB: VHGI) announced today that it intends to distribute to the shareholders of VHGI Holdings all of its ownership interest in Medical Office Software, Inc., a Florida corporation ("MOS"), which will result in MOS being a separately traded publicly-held company. This transaction will subject shares of MOS to registration under the Securities Exchange Act of 1934, and is expected to be completed in the first quarter of 2012. Prior to the spin-out, MOS will raise up to $2.5 million in capital. In addition, MOS intends to acquire one or more entities prior to of after the spin-out in order to broaden its business.
MOS is engaged in the business of assisting medical practices by providing healthcare software support and a fully integrated Practice Management/EMR Software, and by continuing to develop and enhance the underlying computer hardware and network systems those solutions depend on. MOS has also expanded its services to include web design and consulting services regarding billing matters and other aspects of medical practice.
"As we work towards the completion of our purchase of an operating coal mine, and build our energy and gold businesses, it has become clear that our medical technology business confuses our story," said Doug Martin, CEO and President of VHGI Holdings. "We are very excited about the MOS business and the other plans we have for MOS, and in order to capitalize on those plans, and allow the VHGI Holdings shareholders to share in the success of those endeavors, we felt that a spin-out of MOS to our shareholders would be the best alternative."
About VHGI Holdings
VHGI Holdings is a diverse company with assets and interests focusing on opportunities within the Energy and Mining Markets, Precious Metals and Healthcare Technology Industry.
"Safe Harbor" Statement:
The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development and any other statements not constituting historical facts are "forward-looking statements," within the meaning of and subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. This document may contain forward-looking statements concerning the Company's operations, current and future performance and financial condition. These items involve risks, contingencies and uncertainties such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, the ability to consummate and integrate acquisitions, and other risks, contingencies and uncertainties detailed in the Company's SEC filings, which could cause the company's actual operating results, performance or business plans or prospects to differ materially from those expressed in, or implied by these statements. The Company undertakes no obligation to revise any of these statements to reflect the future circumstances or the occurrence of unanticipated events.
Investors are invited to obtain information concerning our operations at http://www.vhgiholdings.com or by calling shareholder relations at (954) 548-3086 or emailing firstname.lastname@example.org.
For Further Information: Contact Mr. Douglas P. Martin
Shareholder Relations Communications: (954) 548-3086
SOURCE VHGI Holdings, Inc.