TAMPA, Fla., Jan. 27, 2016 /PRNewswire/ -- Advanzeon Solutions, Inc. (OTCBB: CHCR), ("Advanzeon") announced today that it has reached agreement and settlement with TCA of its $5 million Credit Facility Agreement with TCA that was entered into and announced in May of 2013. Under the terms of the new agreement, while all of the basic terms of the original agreement remain in full force and effect, the Company's repayment obligation has been restructured in such a way as to make it more manageable for the Company and provide the Company with the ability to retain a more significant portion of its revenue for working capital and growth.
Mark Heidt, the Company's President, stated, "During the time since the Company originally entered into its Credit Facility with TCA until now, there have been significant changes in healthcare, including increased awareness of spiraling pharmacy costs, as well as the effects of obstructive sleep apnea (OSA) on both the commercial and non-commercial driving population. All motor vehicle drivers, the railroad industry, the airline industry and the public transportation industry, in general, have felt the impact of OSA. Approximately one-and-a-half years ago, the Company concluded that to fully develop its PBM model, it would have to spend considerably more capital and time than it would have available due, in large part, to the length of time it would take to transition companies from their traditional PBM model to a considerably more cost-effective pharmacy management program. Though fully developed and ready for implementation, the Company made a strategic decision to concentrate its efforts and financial resources in developing a sleep apnea program capable of addressing the growing OSA needs of the commercial driver population, as well as the OSA laws that we anticipated to go into effect within a relatively short period of time. The Company believes it achieved its goal in that it has successfully developed what we believe to be the nation's finest and most complete sleep apnea program. We have also launched a successful marketing program to a significant portion of the commercial driver population, clinics and professionals in the behavioral healthcare field, who recognize the need for having a large number of their patients tested for OSA. A number of our prior releases reflect these successes. We are confident that the Company made the correct decision for its future success and has the significant relationships and contacts to now achieve that success."
Mr. Heidt continued, "In our original May 2013 press release, TCA noted that its financing is intended '…to assist them [the Company] in their growth and allow them to take advantage of the opportunities in their sector.' We believe this restructuring is consistent with that goal in that it provides us with the increased financial flexibility much needed to meet our growth objectives. We are extremely appreciative of TCA's continued support."
About Advanzeon Solutions, Inc.
Established in 1969, Advanzeon, directly and through its subsidiaries, provides behavioral health, substance abuse and pharmacy management services, as well as sleep apnea programs, for employers, Taft-Hartley health and welfare Funds, and managed care companies throughout the United States. Headquartered in Tampa, Florida, the Company focuses on personalized attention, flexibility, a commitment to high-quality services and innovative approaches that address both the specific needs of clients and changing healthcare industry demands. For more information, please call 813-367-9080 or visit our website at www.advanzeon.com.
This press release contains forward-looking statements that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. In some cases, you may identify forward-looking statements by words such as "may," "should," "plan," "intend," "potential," "continue," "believe," "expect," "predict," "anticipate" and "estimate," the negative of these words or other comparable words. These statements are only predictions. One should not place undue reliance on these forward-looking statements. The forward-looking statements are qualified by their terms and/or important factors, many of which are outside the Company's control, involve a number of risks, uncertainties and other factors that could cause actual results and events to differ materially from the statements made. The forward-looking statements are based on the Company's beliefs, assumptions and expectations of our future performance, taking into account information currently available to the Company. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to the Company. Neither the Company nor any other person assumes responsibility for the accuracy or completeness of these statements. The Company will update the information in this press release only to the extent required under applicable securities laws. If a change occurs, the Company's business, financial condition, liquidity and results of operations may vary materially from those expressed in the aforementioned forward-looking statements.
SOURCE Advanzeon Solutions, Inc.