GIG HARBOR, Wash., March 28, 2006 (PRIMEZONE) -- Nannaco, Inc. ("Nannaco") (Pink Sheets:NANN) announced today that on March 17, 2006, it entered into an agreement and Plan of Merger with GAK Acquisition Inc., which owns the right to acquire Comprehensive Physics & Rehabilitation Services ("CPRS"), a Nevada corporation. On the effective date of the merger, Nannaco will issue an amount of shares representing 95% of the issued and outstanding shares of Nannaco to the shareholders of GAK Acquisition, Inc. and will be allowed to elect one person to the Board of Directors.
CPRS is a 12 year old firm that provides specialized Internet based treatment plans and medical physics consulting services for radiation centers. Nannaco's acquisition of CPRS will provide the foundation for the entity to achieve significant revenue growth from both (i) internal expansion of CPRS's existing business, and (ii) from its plan for future acquisitions in the highly fragmented radiation and cancer industries. CPRS achieved revenues of approximately $1,700,000.00 for the year ended 2005 with EBITDA of approximately $100,000.00. Management believes that the merger will provide CPRS with greater access to capital with which it intends to commence enhanced sales and marketing efforts.
Currently, there are over 2,000 radiation centers in the country providing radiation services to cancer patients. Depending on the type of cancer and condition a patient, on average, receives approximately 26 treatments during the course of radiation therapy. During the course of treatment, patient records and actual care have to be closely monitored and generally require approximately 5 patient reviews made by a qualified medical physicist. These patient or chart reviews assure proper patient care. In many radiation centers, lack of a full time available physicist can result in less than optimal patient reviews.
CPRS addresses these needs by providing a full range of patient specific radiation service treatment plans in addition to online treatment plans. This solves two key barriers of entry for radiation centers seeking to offer new technology by making available the most advanced treatment methodology to smaller radiation centers without substantial investment for equipment and staff. The Company, therefore, offers the possibility to enable radiation centers to increase revenues and profits while lowering expenses and improve quality.
CPRS operates its remote treatment planning services out of a facility located on the east coast. The center houses computer stations with treatment planning software and equipment that receives and sends required patient data and images in accordance with healthcare data security standards. The center is staffed and currently equipped to service substantial additional business volume. Medical Physics services and specialty consulting are also provided at client sites.
Pursuant to the terms of the merger agreement, Nannaco has agreed to reduce its liabilities and will raise a minimum of $600,000.00. In connection with the merger plans and prior existing agreement with Amenni, Inc. ("Amenni"), Nannaco further announced today that Nannaco and Amenni have terminated their merger agreement, which the parties announced on August 19, 2005, and unwind the transaction, effective today. Nannaco and Amenni, Inc. have mutually agreed not to pursue consummation of the proposed merger between the parties and have ended further negotiations.
THE MARKET -- The radiation oncology market is growing worldwide. Internationally the market is in its infancy. In the U.S. over 5,000,000 Americans have cancer. There are 850,000 new cancer cases diagnosed annually with 60% of all cancer patients being treated by radiation therapy. Radiation centers treat an average of 650 patients annually and smaller radiation centers generate revenues of up to $5,000,000 or more.
MANAGEMENT -- Dr. William Walker, President -- Dr. Walker is a professional medical physicist with 35 years of experience in clinical practice, research and program management. He holds a B.S. in Civil Engineering from the Virginia Military Institute, an M.S. in Radiation Biophysics from the University of Kansas and a Ph.D. from the University of Florida in Environmental Engineering (Medical Physics). He is certified by the American Board of Health Physics, licensed by the State of Florida as a Therapeutic Radiological Physicist and is a registered Professional Engineer. Dr. Walker headed the U.S. Nuclear Regulatory Commission's medical and academic licensing program and later was the Radiation Safety Officer and Radiation Safety Program Director for the National Institute of Health. He is the author of numerous papers on medical and health physics and currently serves as an officer and member of the Board of Directors of Advanced Oncology Network, Inc. He is also a member of the Board of Directors of Abundant Blessings (Jamaica) Cancer Treatment Centre, Ltd. and Universal Healthcare Management Systems.
About NANNACO, INC.
Nannaco, Inc. previously provided surface cleaning, surface protection, surface restoration and other services to commercial and industrial businesses, as well as to owners of historical buildings. The company has moved to a new line of business as a consultant and advisor to customers and is seeking to improve its financial position through the acquisition of, or merger with, companies capable of providing the best value to its shareholders.
More information about Nannaco Inc. can be found at http://www.sec.gov.
NOTE: This press release may contain "forward-looking statements." In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential," "continue" or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, competition, expected activities and expenditures as we pursue our business plan, and the adequacy of our available cash resources. Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Actual results may differ materially from the predictions discussed in these forward-looking statements. Changes in the circumstances upon which we base our predictions and/or forward-looking statements could materially affect our actual results. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things: (1) the company's limited operating history; (2) the company's ability to pay down existing debt; (3) the company's ability to retain the professional advisors necessary to guide us through our corporate restructuring; (4) the company's ability to secure necessary financing; (5) potential litigation by shareholders and/or former or current advisors against the company; (6) the company's success in securing third-party commitments, production agreements and/or licensing contracts; (7) the company's ability to comply with federal, state and local government regulations and/or unforeseen changes in federal or and government regulations; and (10) the risks inherent in the investigation and consummation of the acquisition of a new business opportunity or other factors over which we have little or no control.
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