AAC Holdings Finalizes Agreement with Senior Secured Lenders and Appoints Three New Independent Board Members
November 05 2019 - 6:28AM
AAC Holdings, Inc. announced today several new developments for the
company, including an agreement with its senior secured lenders
that provided the Company with an additional $5 million of
liquidity and a forbearance agreement through March 31, 2020,
regarding certain events of default.
AAC Holdings also appointed three new independent members to its
board of directors this week. The new members are LOC Distribution
CEO Bob Nash, Vogel Partners Managing Member Scott D. Vogel and TML
Corporate Strategies President T. Michael Logan.
Bob Nash is a Nashville entrepreneur who is currently the CEO of
LOC Distribution. Mr. Nash has established more than 20 businesses
during his career, most notably Foundations Associates, which he
co-founded with Michael Cartwright in 1995. For 10 years, Mr. Nash
served on the treatment center’s executive leadership team,
overseeing multiple financial aspects of the organization. Mr.
Nash’s business acumen also comes from his diverse experience in
establishing businesses in a variety of industries, from
construction and entertainment to an auto dealership and restaurant
venture. Mr. Nash is a graduate of Lipscomb University and served
on the Tennessee National Guard for six years.
Scott D. Vogel is the managing member at Vogel Partners LLC, a
private investment and advisory firm. He previously served as the
managing director at Davidson Kempner Capital Management where he
devoted 14 years of his career to investing in a diverse set of
industries. Previously, Mr. Vogel worked for the private investment
firm of Michael F. Price, and at Chase Securities in its healthcare
investment banking group. Mr. Vogel has also served on numerous
boards during his career and is currently a member of the board of
Avaya, Bonanza Creek Energy, Seadrill Ltd., and several private
companies. He received his M.B.A. from The Wharton School at the
University of Pennsylvania and his B.S.B.A. from Washington
University.
T. Michael Logan is the president of TML Corporate Strategies,
LLC. In addition to running his own consulting firm, he has also
been a managing director for both SunTrust Robinson Humphrey and
SunTrust Bank. Mr. Logan has more than 36 years of intensive
business experience as a consultant, from working with companies in
both the public and private sectors across numerous industries.
Logan, who holds a degree in economics, attended Vanderbilt
University on a football scholarship.
The new members join AAC CEO Michael Cartwright, Vaco Holdings
CEO Jerry Bostelman, and Burch Investment Group CEO Lucius Burch on
the board.
“We are pleased to reach a mutual agreement with our senior
secured lenders that provides AAC with additional liquidity to
right-size our balance sheet and reduce our cost of capital,” said
Michael Cartwright, Chairman and CEO. “I am also pleased with the
extensive expertise the three new independent board members bring
to the company. With these new developments and our expected
sequential positive operating results for the third consecutive
quarter, we are confident about the trajectory of AAC.”
About American Addiction CentersAmerican
Addiction Centers (OTC: AACH) 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”) possible or assumed
future operating results and outlook. 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 successfully raise capital to meet the Company’s
liquidity needs and to allow it to continue to operate as a going
concern; (iii) the Company’s inability to effectively operate its
facilities; (iv) the Company’s reliance on its sales and marketing
program to continuously attract and enroll clients; (v) a reduction
in reimbursement rates by certain third-party payors for inpatient
and outpatient services and point-of-care and definitive lab
testing; (vi) the Company’s failure to successfully achieve growth
through acquisitions and de novo projects; (vii) risks associated
with estimates of the value of accounts receivable or deterioration
in collectability of accounts receivable; (viii) the possibility
that a governmental entity may prohibit, delay or refuse to grant
approval for the consummation of an acquisition; (ix) the Company’s
failure to achieve anticipated financial results from contemplated
and prior acquisitions; (x) a disruption in the Company’s ability
to perform diagnostic laboratory services; (xi) maintaining
compliance with applicable regulatory authorities, licensure and
permits to operate the Company’s facilities and laboratories; (xii)
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; and (xiii) 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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