Standard Management Forms Partnership
13 Fevereiro 2007 - 10:45AM
PR Newswire (US)
INDIANAPOLIS, Feb. 13 /PRNewswire-FirstCall/ -- Standard Management
Corporation ("Standard Management" or the "Company")
(OTC:SMANOTC:SMANP), based in Indianapolis, Indiana, announced
today the signing of a Management Agreement with Universal
Healthcare Company, LLC ("Universal"), a newly organized entity
that will provide pharmaceuticals to the long-term care industry.
(Logo: http://www.newscom.com/cgi-bin/prnh/20010416/STANDARDLOGO )
Standard Management is a manager of Universal, which intends to
acquire companies that provide pharmaceuticals to the long-term
care industry. Standard Management will manage all subsidiaries of
Universal. Standard Management will receive management fees based
on certain factors tied to results. Standard Management is a member
of Universal and anticipates that its equity ownership will be
diluted to approximately 20% in connection with financing of
acquisitions by Universal. Ronald D. Hunter, Chairman, President
and Chief Executive Officer of Standard Management stated, "This
investment and financial structure provides less dilution to
current Standard Management shareholders with increased
opportunities for positive returns in a shorter time frame. This
partnership was influenced by new investors requiring separation
from potential legacy issues while providing an opportunity for all
investors." Hunter continued, "When Standard Management emerged in
2005 as a provider of pharmaceuticals to the long-term care
industry, management's expectations were, by year-end 2008, the
Company could achieve $200-$300 million in revenue. Management
continues to believe that with the Universal structure this goal
can be achieved with adequate capital, based on current and
anticipated acquisitions under contract and pending letters of
intent." Mark Long, Executive Vice President, Pharmacy Operations
commented, "Over the last 18 months we have purchased and sold
pharmacies across the United States with run rate revenues
exceeding $50 million. We have refined our consolidation model
attracting approximately $400 million in potential revenue in our
acquisition pipeline." Universal has agreed in principle to acquire
Precision Healthcare from Standard Management for $4.2 million.
Consideration will be in the form of $2 million cash, $600,000
stock and $1.6 million debt. Hunter concluded, "We are dedicated to
building a national institutional pharmacy company providing
products and services to the senior care market." Cautionary Note
Regarding Forward Looking Statements This press release contains
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933. The use of the words "believe,"
"expect," "anticipate," "intend," "may," "estimate," "could,"
"plans," and other similar expressions, or the negations thereof,
generally identify forward-looking statements. Forward-looking
statements in this press release include, without limitation, the
performance and growth of our business, potential future
acquisitions, and their impact on the Company's performance. These
forward-looking statements are subject to known and unknown risks,
uncertainties and other factors, which could cause actual results
to be materially different from those contemplated by the forward-
looking statements. Such factors include, but are not limited to,
our ability to expand our health services business both organically
and through acquisitions, including our ability to identify
suitable acquisition candidates, acquire them at favorable prices
and successfully integrate them into our business; general economic
conditions and other factors, including prevailing interest rate
levels and stock market performance, which may affect our ability
to obtain customer response to new products, distribution channels
and marketing initiatives; and increasing competition in the sale
of our products. We caution you that, while forward-looking
statements reflect our good faith beliefs, these statements are not
guarantees of future performance. In addition, we disclaim any
obligation to publicly update or revise any forward- looking
statement, whether as a result of new information, future events or
otherwise, except as required by law. Standard Management is a
holding company headquartered in Indianapolis, Indiana. Information
about the Company can be obtained by calling the Investor Relations
Department at (317) 574-6224 or via the Internet at
http://www.sman.com/.
http://www.newscom.com/cgi-bin/prnh/20010416/STANDARDLOGO
http://photoarchive.ap.org/ DATASOURCE: Standard Management
Corporation CONTACT: Matthew Katz, Investor Relations of Standard
Management Corporation, +1-317-574-6224 Web site:
http://www.sman.com/
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