ST. LOUIS, Jan. 23, 2004 (PRIMEZONE) -- In a major announcement today, Quality of Life Health Corporation (Pink Sheets:QLHC) reported that the first $5,000,000 of its preferred stock offering had been sold to RC Equity Trust, of Beverly Hills, California. The QLHC Board of Directors had approved the issuance of up to $12 million of preferred stock in November, 2003 for the purpose of retiring debt and pursuing further acquisitions.
Dr. Larry Stockman, President of QLHC, announced "This is a big step forward for our rapidly growing company. The investment by RC Equity Trust provides strategic equity funding for us to take advantage of timely opportunities in the high growth areas of the assisted living industry and for increasing the marketing activities of our innovative health management services being offered by our subsidiary, Value Health Access Corporation (www.vhac.com). We appreciate the vision of the investment group at RC Equity Trust. We feel we have a partner whose knowledge of real estate acquisitions and understanding of our mission is equally as valuable as the equity investment made by his firm today."
In 2003 Quality of Life Health Corporation (www.QLHC.net) embarked on a select acquisition strategy in the assisted living industry, reported to be growing by 17% per year, with increasing demand as baby boomers reach retirement age and are looking for comfortable, semi-independent living arrangements with a variety of activities and ancillary services. The company also launched, through it subsidiary, a national marketing program to offer affordable access to health care professional for the millions of Americans struggling with the escalating costs of traditional health care, for those seeking the advantages of alternative and preventative treatments.
An investment analyst at RC Equity Trust, stated "After careful consideration, we chose Quality of Life Health Corporation as the right investment opportunity into the health care industry. We look forward to a long term and larger investment opportunity with QLHC. Quality's senior management have extensive experience in health care, and their diversified approach to enter several different growth areas and create synergistic links between their subsidiaries, translate into better customer products, and ultimately into bottom line performance. We think QLHC is undervalued and gives us great upside investment potential as they roll out their acquisition plan to become a major player in the assisted living industry. They have the insights to keep them at the forefront of a dynamic, changing market. We're looking for double digit growth from QLHC throughout the next ten years."
David Todt, CFO of Quality of Life Health Corporation, stated that the preferred stock carries an option to convert into common stock at the time the Company completes a future public offering. The Company has been preparing a preliminary draft of an SB-2 offering document, and hopes to complete a new offering of stock in the second quarter of 2004. "Our company set a formula, whereby we will use 15-25% equity and 85-75% debt financing for most of our acquisitions. With only $20,000,000 in equity we can achieve the first step of our plan by acquiring $100,000,000 in additional facilities. The assisted living industry is, as of yet, still open for consolidated. Property values are sometimes low, and there are many opportunities to improve services and achieve cost saving efficiencies through intelligent acquistions."
Safe Harbor Statement:
Statements in this news release that relate to future plans, financial results or projections, events or performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The Company's business and operations are subject to a variety of risks and uncertainties and, consequently, actual results may materially differ from those projected by any forward-looking statements.