Published on October 19, 2009
Apollo
Medical Holdings, Inc. Announces Completion of $1.25 Million Private Placement
of Convertible Notes
Glendale, California, October 16, 2009
– Apollo Medical Holdings, Inc. (OTC-BB:AMEH), a leading provider of management
services to medical groups that provide comprehensive hospital-based medical
services, today announced that it has completed the sale of convertible notes
and warrants through a private placement offering.
In connection with the private
placement, the Company will receive gross cash proceeds of $1.25
million.
“We have successfully implemented our
plan to strengthen the Company’s balance sheet,” stated Warren Hosseinion, M.D.,
Chief Executive Officer of Apollo Medical Holdings, Inc. “With this new funding
and continued improvement in our overall financial performance, we are now well
positioned to achieve our strategic goals.”
Apollo intends to use net proceeds from
the offering for physician recruitment and start-up expenses related to new
contracts, marketing, upgrading of its proprietary web-based ApolloWeb software,
repayment of debt and to support general operations.
The convertible notes and warrants are
convertible into shares of Apollo’s common stock at an initial price of $0.125
per share. The 10% notes will mature on January 31,
2013.
Syndicated Capital, Inc., based in
Santa Monica, California, acted as the exclusive placement agent for the
transaction.
About
Apollo Medical Holdings, Inc.
Apollo
Medical Holdings, Inc. is a leading provider of management services to medical
groups that provide hospital-based medical services. Apollo intends to
capitalize on the growing market for hospital-based physicians, such as
hospitalists, or physicians with expertise in hospital
medicine. There are 4900 acute care hospitals in the U.S., with over
35 million annual admissions. Total U.S. spending on hospital care is over $650
billion dollars, and is expected to increase to $1.3 trillion by
2016. There are tremendous inefficiencies in the delivery of
inpatient care as well as a high rate of hospital
errors. Both of these are drivers for the growth of hospital-based
medicine. Apollo and its affiliated medical groups have proven
expertise in providing excellent and efficient care to hospitalized
patients.
Safe
Harbor Statement
Under the Private Securities Litigation
Reform Act of 1995: Except for historical information contained herein, the
statements in this news release are forward-looking statements that are made
pursuant to the safe harbor provisions of the Private Securities Act of
1995. Forward-looking statements involve known and unknown risks and
uncertainties, which may cause a company’s actual results, performance and
achievement in the future to differ materially from forecasted results,
performance and achievement. These risks and uncertainties are
described in the Company’s periodic filings with the Securities and Exchange
Commission. The Company undertakes no obligation to publicly release
the results of any revisions to these forward-looking statements that may be
made to reflect events or circumstances after the date hereof, or to reflect the
occurrence of unanticipated events or changes in the Company’s plans or
expectation.