DENVER, Feb. 25, 2000 (PRIMEZONE) -- Coram Healthcare Corporation (NYSE:CRH) today announced that it expects its stock to begin trading on the National Association of Securities Dealers' Over-the-Counter (OTC) Bulletin Board in the coming weeks.
The company has received notice that trading in its stock will be suspended on the New York Stock Exchange (NYSE) prior to the opening on Tuesday, March 7, 2000 or sooner and that application will be made with the Securities and Exchange Commission to delist Coram from the NYSE.
The delisting will occur because Coram does not comply with NYSE listing requirements of at least $50 million in stockholders' equity, $50 million in market capitalization and a stock price of $1.
"We regret that the recent performance of the Company and its highly leveraged capital structure do not currently make it possible to comply with NYSE listing requirements," said Daniel D. Crowley, Chairman, President and Chief Executive Officer. "We believe the strategic repositioning we are undertaking with new leadership is beginning to make a positive difference in the performance of the Company. However, we cannot provide the NYSE with the necessary assurance that we will be able to meet the listing criteria within the 18-month timeframe allowed to achieve compliance."
The Company expects its stock to begin trading OTC Bulletin Board in the coming weeks and will work with the NYSE to effect a smooth transition and uninterrupted trading. The Company will provide additional information as it becomes available.
Denver-based Coram Healthcare, through its subsidiaries, is a national leader in providing quality home infusion therapies. Company subsidiaries also provide support for clinical trials, medical product development and medical informatics, as well as specialty pharmacy benefit management and mail order services.
Note: Except for historical information, all other statements in this press release are "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company's actual results may vary materially from these forward-looking statements due to important risk factors including the Company's history of operating losses and uncertainties associated with future operating results; significant outstanding indebtedness; equity conversion rights held by existing debt holders; limited liquidity; reimbursement-related risks; shifts in the mix of parties that pay for the Company's services; dependence upon relationships with third parties; uncertain future liabilities under capitation arrangements; timing of or ability to complete acquisitions; government regulation of the home health care industry and the Company's ability in the future to comply; certain legal proceedings, including tax disputes; dependence on key personnel; potential volatility of the stock price; New York Stock Exchange listing status; the ability to execute a repositioning of the Company; and unanticipated impacts from the Year 2000 issue. Certain risk factors are described in greater detail in the Company's Form 10-K Annual Report, as amended, Form 10-Q Quarterly Reports, and Form 8-K Current Reports on file with the Securities and Exchange Commission.