LOS ANGELES, June 2, 2004 (PRIMEZONE) -- PracticeXpert, Inc. (OTCBB:PXPT), today announced that its executive officers are surrendering 5.2 million shares of PracticeXpert, Inc. common stock back to the Company.
As part of a transaction relating to the sale of restricted common stock to a private investor, Jonathan Doctor, Chief Executive Officer, Michael Manahan, Chief Financial Officer, and Zima Hartz, Executive Vice President, of PracticeXpert, agreed, as an inducement to the investor, to return one share of management stock to the Company, for every two shares of stock purchased by the private investor. Subsequent to the end of the first quarter the transaction with the private investor was completed, and in accordance with the agreement, management is to return 5.2 million shares of stock to the Company.
Jonathan Doctor, CEO of PracticeXpert, Inc., stated, "The funds generated through the sale of stock to this private investor provided the capital to complete the acquisition of Singer MedScript in March, 2004 adding almost $1 million in additional revenue, provided the capital to pay the earnest money deposit on our acquisition of Cancer Care Network, and bridged our operations through to the $5.8 million financing we completed concurrent with the acquisition of Cancer Care Network that added approximately $9.5 million in additional revenue.
"This amount of shares represents a substantial portion of management's ownership interest in PracticeXpert, and a tremendous concession on the part of management for the benefit of all stockholders. However, management still owns a significant portion of the Company, and in agreeing to surrender this stock, management has confirmed its desire and commitment to take those steps necessary to build value and execute on our business plan."
Mr. Doctor added, "We are confident that we will be amply rewarded for our actions as revenues increase, through additional acquisitions and through our internal sales efforts, and as we drive toward profitability, continuing our plans to become the dominant outsourced medical billing and practice management services company in this $18 billion industry."
About PracticeXpert, Inc.
PracticeXpert, Inc. is in the business of providing "turn-key" administrative services to, as well as developing and deploying systems, technologies and services designed to improve operational efficiencies, reduce billing errors and enhance cash flow for, medical practitioners. Our services revolve around our flagship Revenue Management System, PXpert(tm), and include medical billing and accounts receivable management, practice management, transcription, and consulting. Where applicable, PracticeXpert bundles its technology applications with its billing and other practice management services to provide a complete and integrated solution to its physician customers. To find out more about PracticeXpert, Inc. (OTCBB:PXPT), visit our website at www.practicexpert.com.
Note: Any statements released by PracticeXpert, Inc. that are forward- looking, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act. Editors and investors are cautioned that forward-looking statements invoke risk and uncertainties that may affect the Company's business prospects and performances. These include economic, competitive, governmental, technological and other factors discussed in the statements and in the Company's filings with the Securities and Exchange Commission.