LOS ANGELES, March 9, 2004 (PRIMEZONE) -- Quality of Life Health Corporation (QLHC) entered into a letter of intent with Queench, Inc. (Pink Sheets:QENC) to sell $10 million of Series B preferred convertible stock to Queench, Inc. and affiliates, and provide a three year exclusive marketing agreement for sales of Queench products to QLHC companies.
Queench, Inc. and/or its affiliates, have agreed to provide half the investment proceeds upon completing a final purchase and distribution agreement and half within 45 days of closing. The investment funds are to be used for QLHC (www.qlhc.net) acquisitions, capital expenditures, working capital, and for general corporate purposes.
Queench, Inc. is a publicly held beverage and food company. Queench holds 24-year leases on four natural springs located in Canada, Florida, New York and Oregon and distributes bottled water product lines and Perfect Whip, an all-organic nutritional soy-based food products. In a separate release on March 4, 2004, Lyndell Parris, President & CEO of Queench, Inc., commented: "With experienced management, leading healthcare products and services, and a strong position in growing medical markets, I believe this collaboration represents a strategic partnership that will become a major benefit to Queench, Inc. and its goal to become the most respected brand of water in the world."
QLHC offered Queench, Inc. a three year exclusive marketing agreement to sell bottled water to the assisted living facilities owned by QLHC's subsidiary. The terms of this sales agreement shall be in conformity with standard industry competitive rates.
A second area of marketing collaboration in discussion by the two companies involves QLHC's subsidiary, Value Health Access (www.vhac.com). Value Health Access Corporation is emerging as a leader in the provision of health insurance alternatives for the 41.5 million Americans and small businesses without a health plan, or who's coverage has suffered substantial reductions of benefits due to the spiraling cost of health care. VHAC provides affordable access to a full range of comprehensive healthcare products and services, and alternative and preventative modalities.
Rowan J. Farber, Head of QLHC Mergers & Acquisitions commented: "We are excited about the strategic collaboration with Queench, Inc., as it delivers a strong symbiotic relationship, providing a valuable distribution network to Queench, Inc., while enabling QLHC to aggressively drive its robust acquisition strategy with the additional acquisition funding."
In a related announcement, QLHC reported that it was replacing its Series A preferred convertible stock agreement with RC Equity Trust, with its Series B preferred convertible stock for the contemplated investment by Queench, Inc., and other interested parties.
Quality of Life Health Corporation is forging a new direction for the health care industry by introducing a balanced, holistic approach to health management for the diverse segments of today's health care industry. The Company has embarked upon a select acquisition strategy to build a synergy of premier health management institutions uniquely positioned to provide the highest quality of service to a changing population, and focus on consistent results to stay ahead of the competition. The acquisitions of these targeted companies in the health care industry provide unique, value added, services and products that improve the overall quality of life and well being for their clients and customers. The Company is pursuing acquisitions in the assisted living industry, reported to be a $12 billion industry that is rapidly expanding.
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.