ScripsAmerica Announces Letter of Intent to Acquire Equity Interests in Two Pharmacies, Expanding Specialty Pharmacy Operatio...
07 March 2015 - 8:01AM
Business Wire
Receives Notice that Main Avenue Pharmacy's
contract with a major insurance company to end effective March 13,
2015
ScripsAmerica, Inc. (OTCBB: SCRC), a leading provider of a range
of specialty prescription and over the counter pharmaceuticals and
medical supplies, today announced that it has signed Letters of
Intent to acquire an equity interest in 2 additional specialty
pharmacies licensed to dispense pharmaceutical specialty products
in a total of 40 states.
Bob Schneiderman, Chief Executive Officer and Founding Partner
of ScripsAmerica, said, "As part of our growth strategy, we believe
that making strategic acquisitions of additional pharmacies similar
in profile to Main Avenue Pharmacy represent an attractive,
low-risk means to expand our geographic presence, leverage our
existing investment, and introduce new products to our extensive
distribution network. The two new pharmacies are licensed in a
total of 40 states and already have a healthy mail order business,
bringing us a platform that nicely complements our current
operations. In addition, with these additions we also gain the
market expertise and knowledge of their management teams, which
will serve to strengthen our overall organization."
ScripsAmerica intends to fund the acquisition from existing cash
balances or borrowing availability. The transaction is subject to
normal due diligence and the completion of satisfactory purchase
agreement, with the intention to close the acquisition no later
than June 30, 2015.
Separately, Main Avenue Pharmacy received notice from one of its
payor insurance companies that its agreement was ending effective
March 13, 2015.
Mr. Schneiderman added, "We are already filing for arbitration
to adjudicate the ending of our insurance contract as we firmly
believe this decision is unjust. While the matter is adjudicated,
however, the insurance company has elected to not reimburse its
patients who purchase certain of our products from Main Avenue
Pharmacy, which will have an impact on their revenues. Fortunately,
while any temporary or permanent loss of these reimbursements to
our patients will impact our revenues, we still believe our total
revenues in 2015 will grow due to the efforts underway to diversify
into adjacent and complementary healthcare operations, such as
PIMD, diabetic medical supplies, additional pharmacies, and,
prospectively, a Physician dispensing program. In addition, we
believe revenues from Main Avenue Pharmacy and other lines of
business should enable us to generate a profit in 2015."
About ScripsAmerica, Inc.
ScripsAmerica, Inc. is a supplier of prescription, OTC and
nutraceutical drugs, delivering pharmaceutical products to a wide
range of end users across the health care industry. End users
include retail pharmacies, hospitals, long-term care facilities and
government and home care agencies. For more information, visit
www.ScripsAmerica.com.
Gregory FCAJoe Hassett, 610-228-2110joeh@gregoryfca.com
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