Quantum Creates A New National Anesthesia Company and Acquires DA Management Corp. A NY/NJ based Anesthesia Company
Creates immediate financial synergies with core operations and further strategic partnership with NYC Surgical Associates
TORONTO, May 27, 2015 /CNW/ - Quantum International Income Corp. ("QIIC", or the "Company") (TSXV: QIC), a North American healthcare company focussed on delivering integrated health solutions has created a purpose built subsidiary, Quantum Anesthesia Management LLC ("QAM") to acquire all the common shares of DA Management Corp. ("DA" "the Transaction"). DA Management Corp. is an anesthesia company with anesthesia administration contracts at all NYC Surgical Associates ("NYCSA") facilities in New York, New Jersey and the initial Centers for Special Surgery ("CSS") facility in Essex County.
Key Benefits:
- Immediately adds significant revenues and EBITDA to QIIC's business
- Synergistic with our facility and procedure growth efforts;
- Anesthesia fees increase average revenue per patient (ARPP)
The existing revenue and patient base of DA creates a platform for US National Growth as QAM will be focused on managing and providing anesthesia services in facilities owned, managed or affiliated with QIIC and will also add additional Anesthesia Contracts in markets where QIIC has a market presence.
Thus far in 2015, DA has average monthly run rate of over 100 procedures per month with an average anesthesia fee of approximately $1,450 per procedure, which immediately increases average revenue per patient (ARPP) at any of QIIC's facilities. QAM, as an ancillary service provider, will seek to enter into long term contracts with QIIC (up to 10 years) to provide anesthesia services to facilities that QIIC owns or has an affiliation with.
This acquisition furthers QIIC's business relationship with NYCSA, our partners in CSS. QAM now administers and puts itself in a position to profit on all anesthesia related services in facilities owned, managed or affiliated with NYCSA and CSS including Essex County, New Jersey and the pending transaction with Advanced Surgery Center in Rockland, New York. This new anesthesia management services platform is able to service QIIC's current needs in the New Jersey and New York State areas and can serve as a national platform for future ASCs and other medical facilities in other markets.
Grant White, Chief Executive Officer of Quantum commented, "We are delighted to add anesthesia as the first of many ancillary services to the Quantum portfolio and to have our key business partners at NYCSA as large QIIC shareholders. The immediate contribution to revenue and profits in existing and future facilities from this transaction are transformational for us, and furthers our goal of capturing additional per case patient revenues in our facilities."
QIIC will issue 9 million shares (the "the Consideration Shares") to DGAT Partners, LLC, a related party of NYCSA and the owner of all of the Common Shares of DA as consideration for this transaction. The Transaction is subject to TSXV approval and is expected to close on or around June 2, 2015. The Consideration Shares will be subject to four month hold period.
About Quantum International Income Corp (QIIC)
QIIC is a Healthcare company focused on delivering national integrated health solutions in the United States. The Company seeks to back management teams with strong operational track records and deep healthcare experience. Acquired businesses fit synergistically within a strategic framework, have a proven operating history, opportunities for standalone growth and in some cases national expansion. QIIC currently indirectly holds a 50% interest in Centers for Special Surgery LLC., a corporate surgeon joint venture with U.S. ambulatory surgery center operations. Potential acquisition targets will be in various related areas of the US Healthcare industry in different geographic regions to allow for diversification. Overall QIIC seeks to integrate and grow business in order to generate capital appreciation and stable distributions to its shareholders.
For more information on Quantum International Corp please visit http://quantumincomecorp.com/
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking statements and forward-looking information (collectively, "Forward-Looking Statements") and QIIC cautions investors about important factors that could cause QIIC's actual results to differ materially from those expressed, implied or projected in any Forward-Looking Statements included in this press release. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "expects", "will continue", "is anticipated", "anticipates", "may", "could", "believes", "estimates", "intends", "plans", "forecast", "projection" and "outlook") are not historical facts and may be Forward-Looking Statements that involve projections, estimates, assumptions, known and unknown risks and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such Forward-Looking Statements or otherwise materially inaccurate. No assurance can be given that these expectations or assumptions will prove to be correct and such Forward-Looking Statements included in this press release should not be unduly relied upon. These Forward-Looking Statements speak only as of management's beliefs and expectations as of the date of this press release. In addition, this press release may contain Forward-Looking Statements drawn from or attributed to third party sources. Accordingly, any such statements are qualified in their entirety by reference to the information discussed throughout this press release.
In particular, this press release contains Forward-Looking Statements regarding anticipated future financial, structural, growth and operating performance of QIIC, including as it pertains to the operations detailed in this press release and the deployment of capital into new acquisitions.
Actual results may differ materially due to a number of risks and uncertainties faced by QIIC, including, but not limited to: general economic and business conditions; global financial conditions; the failure of QIIC to identify future acquisition targets; third parties honouring their contractual obligations with QIIC and its subsidiaries; relationships with operating and/or joint venture partners; inaccuracy, incompleteness or omissions in any of the financial and other information upon which management bases its analysis of potential acquisitions; the failure to realize the anticipated benefits of QIIC's current and future acquisitions; factors relating to the healthcare industry, including reliance on third-party payors for revenue; licensing, certification and accreditation risk; healthcare regulatory requirements; dependence on physician relationships; litigation, professional liability claims; insurance coverage limitations and uninsured risks; dependence on key personnel at the QIIC and operations level; competition from other healthcare providers; factors relating to the media content generation and distribution industry, including ability to deliver services in a timely manner; changes in technology, consumer markets or demand for media services; changes in federal, provincial and foreign content laws and regulations; dependence on third party content producers; competition for, among other things, capital, equipment and skilled personnel; the inability to generate sufficient cash flow from operations to meet future obligations; the inability to obtain required debt and/or equity financing for future acquisitions on suitable terms; competition for acquisition targets; seasonality and fluctuations in results; and limited diversification of QIIC's business industries, structures and operations.
QIIC cautions that the list and description of Forward-Looking Statements, risks, assumptions and uncertainties set out above is not exhaustive. QIIC will update the Forward-Looking Statements as required by securities law. All Forward-Looking Statements contained in this press release are qualified by these cautionary statements.
Unless otherwise specified in this press release, information contained in this press release is current as of the date of this press release. Unless otherwise specified, all dollar amounts herein refer to Canadian dollars. Additional information on these and other factors that could affect the operations or financial results of QIIC and its subsidiaries are included in disclosure documents filed by QIIC with the securities regulatory authorities, available under QIIC's profile on SEDAR at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Quantum International Income Corp
Grant White, Chief Executive Officer, 416.477.3410; Manu K. Sekhri, President, 416.477.3424; Investor Relations, Kin Communications, Joel Kitsul - Sr. VP Investor Relations, 1-866-684-6730, [email protected]
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