NEW YORK, July 15 /PRNewswire-FirstCall/ -- Andrew Brown, CEO and President of Ramp Corporation , today announced that in conjunction with a recently-completed $4.2MM financing, Ramp is in the process of refining its physician marketing initiatives and revising its core technology integration efforts, the combination of which has allowed for an overall staff reduction of 33%, yielding a significant lowering of monthly expenses and improvement in the Company’s financial condition. At the same time, Ramp has decided to indefinitely delay the commencement of operations for its wholly-owned LifeRamp Family Financial subsidiary, allowing Ramp to focus all of its current resources on the deployment of its HealthRamp connectivity solutions. Ramp Corporation is the parent company of HealthRamp, Inc., which develops and markets the HealthRamp CarePoint(TM) and HealthRamp CareGiver(TM) technology suites, and OnRamp, a state-of-the-art telecommunications center.
“The net result of these changes is that I believe Ramp is better positioned than it has been at any time during the past three or four years. We have substantially decreased our monthly expenses, which makes us more attractive to institutional-quality investors, and we are confident that, moving forward, we will continue being able to obtain the necessary capital we need to fund our growth,” said Brown. “The opportunities currently before us are truly extraordinary. The potential for the CareGiver market is especially impressive. There are more than 900 nursing homes in New York State alone, and our goal is for the long-term care market to exceed $100 million in annual revenues for us, within the next three to five years. Deploying CarePoint in physicians offices and other healthcare venues continues to progress nicely, with each week yielding measurable accomplishments. Perhaps as important as anything, while we have reduced our workforce and lowered expenses, today we remain poised to service our existing clients and effectively meet the challenges of new ones,” concluded Brown.
On July 14, 2004, the Company completed a $4.2MM financing, consisting of a senior unsecured note in the amount of $4.2MM, which is convertible at the investor’s option at a price of $0.30 per share, and is mandatorily convertible at the Company’s option under certain circumstances. Accompanying the note are warrants for 37.5MM shares, which have an average exercise price of $0.25 per share, and a range of exercise prices from $0.11 to $0.40 per share.
Physician marketing initiatives have been improved through developing relationships with practice management system vendors and as a result of the recent release of HealthRamp’s CarePoint version 4.2, which has greater functionality, making it more easily deployable in a physician’s practice. Current and emerging relationships with practice management system vendors will allow the Company to more efficiently reach physicians, and provide a means to more effectively deploy the needed interfaces in a physician’s office. The bulk of the reduction in force impacted the technology and client support services groups, due to the aforementioned relationships and resulting process improvements. Ramp has at the same time greatly increased its business development staff, a direct response to the opportunities it is encountering in the marketplace for its CarePoint technology suite. Similarly, Ramp’s CareGiver technology efforts have not been slowed by the recent reduction in force, and the Company is poised to begin deploying the CareGiver solution in the 3rd quarter of this year.
Ramp Corporation, through its wholly owned HealthRamp subsidiary, develops and markets the HealthRamp CarePoint and HealthRamp CareGiver technology suites. CarePoint enables electronic prescribing, lab orders and results, Internet-based communication, data integration, and transaction processing over a handheld device or browser, at the point-of-care. CareGiver lets longterm care facility staff place orders for drugs, treatments and supplies from a wireless handheld PDA or desktop Internet web browser. Ramp’s OnRamp division provides a state-of-the-art telecommunications center that enables 24/7 communication between a medical practice and its patients. LifeRamp will eventually provide financial assistance to a large subset of individuals with cancer and their families, by letting them establish lines of credit against the face value of their qualifying life insurance policies, at reasonable rates. Additional information about Ramp, and its products and services, can be found at http://www.ramp.com/.
Safe Harbor Statement: To the extent that any statements made in this press release contain information that is not historical, these statements are essentially forward-looking. Forward-looking statements can be identified by the use of words such as “expects,” “plans,” “will,” “may,” “anticipates,” “believes,” “should,” “intends,” “estimates,” and other words of similar meaning. These statements are subject to risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, the ability of the Company to raise capital to finance the development of its Internet services and related software, the effectiveness, profitability and the marketability of those services, the ability of the Company to protect its proprietary information and to retain and expand its user base, the establishment of an efficient corporate operating structure as the Company grows and, other risks detailed from time-to-time in our filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update any forward-looking statements.
Ramp Corporation
CONTACT: Andrew Brown of Ramp Corporation, +1-212-440-1548
Web site: http://www.ramp.com/
