CHCR Comprehensive Care Corporation Announces $730,000 Equity Financing

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From: Stock News Bot
Date: March 2, 2005 09:34:59 AM

CHCR Comprehensive Care Corporation Announces $730,000 Equity Financing

Comprehensive Care Corporation Announces $730,000 Equity Financing TAMPA, Fla. Comprehensive Care Corporation, Tampa Robert J. Landis, 813-288-4808 Comprehensive Care Corporation (OTCBB:CHCR) (CompCare), a company specializing in managed behavioral healthcare and employee assistance services through its operating subsidiaries, reported today that certain strategic accredited investors have purchased an aggregate of 725,000 shares of common stock of the Company (the "Shares") for an aggregate of $761,250 in gross proceeds, with expected net cash proceeds of approximately $730,000. The Company intends to utilize such proceeds for product and sales expansion and working capital purposes. In connection with this private placement, the Company expects to issue warrants, which will have a five-year term and an exercise price of $1.25. Mary Jane Johnson, CEO of CompCare, stated, "We anticipate this private equity investment will accelerate our expansion into new markets and new products, which is key to our growth strategy." The Shares, warrants and the shares of common stock underlying the warrants have not been registered under the Securities Act of 1933, as amended, and may not be sold in the United States absent registration or an applicable exemption from registration requirements. About Comprehensive Care Corporation Established in 1969, CompCare provides behavioral health, substance abuse, and employee assistance programs for governmental agencies, managed care companies and employer groups throughout the United States. Headquartered in Tampa, Florida, CompCare operates regional service centers in Connecticut, Florida, Michigan, and Texas; serves approximately 1,000,000 covered individuals nationwide; and has a network of approximately 10,000 qualified behavioral health practitioners. With 35 years of experience in the industry, CompCare focuses on personalized attention, flexibility, a commitment to high-quality services, and innovative approaches to behavioral health that address both the specific needs of clients and changing healthcare industry demands. "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Certain information included herein and in other Company reports, SEC filings, statements, and presentations is forward looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning the Company's anticipated operating results, financial resources, increases in revenues, increased profitability, interest expense, growth and expansion, and the ability to obtain new behavioral healthcare contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect actual results and cause them to differ materially from expectations expressed herein and in other Company reports, SEC filings, statements, and presentations. These risks and uncertainties include local, regional, and national economic and political conditions, our ability to obtain additional financing, the effect of governmental regulation, the competitive environment in which the Company operates, and the other risks detailed from time to time in the Company's SEC reports. Copyright © 2005 Business Wire. All reproduction, other than for an individual user`s reference, is prohibited without prior written permission. News Copyright © 2005 Interest!ALERT All rights reserved.

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