SUNRISE, Fla., March 1 /PRNewswire-FirstCall/ -- NationsHealth, Inc. (Nasdaq: NHRX; NHRXW; NHRXU) announced today that it has successfully completed a $15 million secured convertible debt financing with MHR Capital Partners LP and certain of its affiliates (“MHR”). The proceeds of this financing will enable the Company to expand its current business lines and will provide the Company with sufficient capital to support several new initiatives, including those related to the Medicare Modernization Act.
“NationsHealth selected the convertible notes proposed by MHR after evaluating several different financing options,” said Dr. Glenn M. Parker, MD, Chief Executive Officer of NationsHealth. “Among the numerous advantages of the MHR proposal are a conversion price at a significant premium to current market, an extended maturity date and a balloon principal payment. We are pleased with this strong show of support by MHR, already one of the largest shareholders of the Company.”
Under the terms of the financing, the Company has issued secured convertible promissory notes in the aggregate principal amount of $15 million. The notes have a seven year maturity, bear interest at 7.75 percent per annum and are convertible by the holder into the common stock of the Company at $6.56 per share, subject to anti-dilution adjustments. In conjunction with the sale of the notes, the Company’s principal shareholders transferred, on behalf of the Company, 1,785,714 shares from their personal holdings to MHR.
About Nationshealth, Inc.
NationsHealth was 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 discount prescription cards, accepted at over 50,000 pharmacies nationwide. The Company currently has over 2,500,000 card members. In addition, NationsHealth provides home delivery of diabetes, respiratory and ostomy medical products to approximately 113,000 of its patients. NationsHealth is also the provider of diabetes supplies for Medicare beneficiaries at over 1,000 Kmart pharmacies. For more information please visit http://www.nhrx.com/.
Safe Harbor Statement
Statements made in this press release that state NationsHealth’s intentions, belief, expectations or predictions for the future are forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Readers are cautioned that these statements are only predictions and may differ materially from actual future events or results. All forward-looking statements are only as of the date of this press release and NationsHealth undertakes no obligation to update or revise them. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause NationsHealth’s actual results to differ materially from those projected in such forward-looking statements. These forward-looking statements include statements regarding NationsHealth’s intended use of proceeds. Important factors which could cause NationsHealth’s actual results to differ materially from those projected in forward-looking statements include, without limitation, economic, competitive, governmental and regulatory factors affecting the medical products, pharmaceutical and prescription drug industry and/or NationsHealth’s operations, markets, products, services, prices and other factors set forth under the heading “Risk Factors” in NationsHealth’s Quarterly Report on form 10-QSB for the three months ended September 30, 2004, as filed with the Securities and Exchange Commission.
NationsHealth
CONTACT: Tim Fairbanks, CFO, +1-954-903-5000, or Arthur Spector,Chairman, +1-610-975-4909, both of NationsHealth; or Melody A. Carey(investors), +1-917-322-2571, or Tony Loke (media), +1-917-322-2164, both ofRx Communications Group, for NationsHealth
Web site: http://www.nationshealth.com/