TORONTO and HOUSTON, Aug. 6 /CNW/ - Northstar Healthcare Inc. today announced that it received an advance in the amount of Cdn.$1,016,150 (the "Advance") from Canada Healthcare Acquisition Inc. ("CHA"), a corporation indirectly controlled by Dr. Donald L. Kramer, M.D., a former CEO and former director of Northstar.
The Advance is in connection with the agreement announced on July 30, 2010, under which CHA will subscribe for Cdn.$5 million in Northstar common shares through a non-brokered private placement (the "Private Placement"). The Advance will be a part of the Cdn.$5 million consideration under the Private Placement.
Closing of the Private Placement, which is subject to certain conditions, is expected to occur on September 7, 2010 or as soon as practicable thereafter. The Advance will be used for current working capital needs. The balance of the proceeds of the Private Placement will be used for future working capital and general corporate purposes.
About Northstar Healthcare Inc.
Northstar owns and/or manages ambulatory surgery centres in the United States, focusing initially on Houston and other metropolitan areas in Texas. The Company currently holds interests in two ambulatory surgery centres in Houston - a 70% partnership interest in The Palladium for Surgery - Houston and a 60% partnership interest in Medical Ambulatory Surgical Suites.
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to business of the Company and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Forward-looking information in this news release includes, without limitation, statements made with respect to the expected closing date of the Private Placement, the use of the proceeds thereof, and other statements regarding management's beliefs, intentions, results, performance, goals, achievements, future events, plans and objects.
All forward-looking statements in this news release are qualified by these cautionary statements. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, should not be unduly relied upon and will not necessarily be accurate indications of whether or not such results will be achieved. Factors that could cause actual results to differ materially from the results discussed in the forward-looking statements, include, but are not limited to a failure of Northstar to complete the Private Placement in a timely fashion or at all, including by reason of its inability to obtain an exemption from the TSX from the requirement to seek shareholder approval for the Private Placement. Forward-looking information is based on various material factors or assumptions, which are based on information currently available to Northstar. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include, but are not limited to: the financial and operating attributes of Northstar as at the date hereof, the successful completion of the Private Placement, the views of Northstar's board of directors regarding the benefits associated with the Private Placement, and the successful attainment of goals related to any proposed new business plan and future growth opportunities. Readers are cautioned that the preceding list of material factors or assumptions is not exhaustive. Although the forward-looking statements contained in this news release are based upon what management believes are reasonable assumptions, Northstar cannot assure readers that actual results will be consistent with these forward-looking statements.
The forward-looking statements contained in this news release are made as of the date of this news release and should not be relied upon as representing Northstar's views as of any date subsequent to the date of this news release. Northstar assumes no obligation to update or revise these forward-looking statements to reflect new information, events, circumstances or otherwise, except as required by applicable law.
SOURCE Northstar Healthcare Inc.
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