LOS ANGELES, Aug. 24, 2004 (PRIMEZONE) -- PracticeXpert, Inc. (OTCBB:PXPT) today issued these management comments in response to inquiries from investors relating to recent trading activity in the Company's common stock in the open market.
Jonathan Doctor, president and chief executive officer of PracticeXpert, said, "There has been a decrease in our stock price along with increased trading volume in our stock recently. As previously announced, on April 28, 2004, we raised approximately $5.8 million in a private placement transaction involving the sale of stock and warrants. The proceeds of this financing were used to complete the acquisition of Cancer Care Network, and retire certain debt obligations. As a result of the acquisition of Cancer Care Network, we have added close to $10 million in additional revenues, on an annualized basis.
"As required by the terms of that $5.8 million financing, we were required to file a registration statement with the Securities and Exchange Commission to register the common stock and common stock underlying the warrants sold to investors. The Securities Exchange Commission declared the registration statement effective on August 13, 2004, which permits such investors to sell their stock, if they choose to do so, in open market transactions. Since the financing was completed at a discount to the market price of the common stock on the closing date of the transaction (typical in these types of financings), such investors could sell their shares of common stock in the open market at a profit.
"We believe that the public offering pursuant to this registration statement has resulted in increased trading volume, and related downward pressure on our stock price. Others investors, with different investment perspectives, we expect will choose to not sell their stock at this time. Selling stock at this time may have a negative effect on our stock price, but ultimately we believe our stock price should reflect the true value of our enterprise over time."
"We continue on our plans to acquire additional companies, grow internally, deploy our technology solutions and provide superior billing and practice management services to our physician customers, and we look forward to communication our progress to you, as new developments unfold."
"If you have any further questions, please do not hesitate to contact us."
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, including the Company's Form SB-2 Registration Statement filed with the Securities and Exchange Commission on August 10, 2004.