AAC Holdings Finalizing Agreement with Lenders and Finalizing Appointment of New Independent Board Members
October 22 2019 - 6:25AM
AAC Holdings, Inc. (NYSE: AAC) today announced that as a result of
continued positive discussions with the Company’s senior secured
lenders, the Company expects to enter into an agreement securing
additional liquidity and receiving a forbearance from its senior
secured lenders regarding certain previous events of default. The
Company expects to finalize the agreement with its senior secured
lenders next week, although no assurance can be made that an
agreement will result from these discussions within that time frame
or that an agreement consistent with these discussions will be
reached at all.
The Company is also in the process of finalizing the appointment
of three additional independent members to its Board of Directors.
The new members would join AAC CEO Michael Cartwright, Vaco
Holdings CEO Jerry Bostelman, and Burch Investment Group CEO Lucius
Burch on the board. Although the Company expects to finalize these
appointments next week, no assurance can be made that the Company
will be able to finalize any or all of these appointments within
that time frame or at all.
About American Addiction Centers American
Addiction Centers is a leading provider of inpatient and outpatient
substance abuse treatment services. We treat clients who are
struggling with drug addiction, alcohol addiction, and co-occurring
mental/behavioral health issues. We currently operate substance
abuse treatment facilities located throughout the United States.
These facilities are focused on delivering effective clinical care
and treatment solutions. For more information, please find us at
AmericanAddictionCenters.org or follow us on Twitter
@AAC_Tweet.
Forward Looking Statements
This release contains forward-looking statements within the
meaning of the federal securities laws. These forward-looking
statements are made only as of the date of this release. In some
cases, you can identify forward-looking statements by terms such as
“anticipates,” “believes,” “could,” “estimates,” “expects,” “may,”
“potential,” “predicts,” “projects,” “should,” “will,” “would,” and
similar expressions intended to identify forward-looking
statements, although not all forward-looking statements contain
these words. Forward-looking statements in this release include
statements regarding AAC Holdings, Inc.’s (collectively with its
subsidiaries; “AAC Holdings” or the “Company”) ability to
successfully negotiate an agreement securing additional liquidity
and receiving a forbearance from its senior secured lenders, and
the Company’s ability to appoint three additional independent
members to its Board of Directors. These statements involve known
and unknown risks, uncertainties and other factors that may cause
the actual result or timing to be materially different from the
information contained in any forward-looking statements. These
risks, uncertainties and other factors include, without limitation:
(i) the Company’s inability to meet the covenants in the Company’s
loan documents or lack of borrowing capacity; (ii) the Company’s
inability to enter into forbearance agreements and amendments with
its lenders with respect to certain events of default on terms
acceptable to the Company in a timely matter, or at all; (iii) the
Company’s inability to successfully raise capital to meet the
Company’s liquidity needs and to allow it to continue to operate as
a going concern; (iv) the Company’s inability to finalize the
appointment of, and complete onboarding procedures for, one or more
additional independent directors to its Board of Directors within
the time frame indicated or at all; (v) the Company’s inability to
effectively operate its facilities; (vi) the Company’s reliance on
its sales and marketing program to continuously attract and enroll
clients; (vii) a reduction in reimbursement rates by certain
third-party payors for inpatient and outpatient services and
point-of-care and definitive lab testing; (viii) the Company’s
failure to successfully achieve growth through acquisitions and de
novo projects; (ix) risks associated with estimates of the value of
accounts receivable or deterioration in collectability of accounts
receivable; (x) a failure to achieve anticipated financial results
from contemplated and prior acquisitions; (xi) the possibility that
a governmental entity may prohibit, delay or refuse to grant
approval for the consummation of an acquisition; (xii) the
Company’s failure to achieve anticipated financial results from
contemplated and prior acquisitions; (xiii) a disruption in the
Company’s ability to perform diagnostic laboratory services; (xiv)
maintaining compliance with applicable regulatory authorities,
licensure and permits to operate the Company’s facilities and
laboratories; (xv) a disruption in the Company’s business and
reputational and economic risks associated with the civil
securities claims brought by shareholders or claims by various
parties; (xvi) the Company’s ability to maintain the listing of the
Company’s common stock on the NYSE; and (xvii) general economic and
market conditions, including conditions in the debt and equity
capital markets in particular, as well as other risks discussed in
the “Risk Factors” section of the Company’s Annual Report on Form
10-K for the year ended December 31, 2018 and other filings with
the Securities and Exchange Commission. As a result of these
factors, we cannot assure you that the forward-looking statements
in this release will prove to be accurate. Investors should not
place undue reliance upon forward-looking statements.
Contact: Joy Sutton Director of Corporate
Communications Office: (615) 727-8407 Cell: (615) 587-7728
JSutton@ContactAAC.com
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