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Arcadia Resources to Acquire JASCORP Pharmacy Management Systems Business
SOUTHFIELD, MI, July 12, 2007 -- Arcadia Resources, Inc. (AMEX: KAD), an innovator in consumer health care services, today announced that it has acquired the JASCORP pharmacy management software subsidiary of The F. Dohmen Co., a family-owned business based in Germantown, Wisconsin. The purchase price is approximately $2,050,000, of which $250,000 will be paid in cash and the balance will be paid in Arcadia Resources common stock.
Arcadia Resources noted that the acquisition of JASCORP will complement and support the growth of its health care services operations, particularly its PrairieStone Pharmacy prescription network and DailyMed™ prescription packaging system, both of which have run on JASCORP software since January 2004. The transaction was completed July 10, 2007.
JASCORP provides a range of retail pharmacy management services and systems, including dispensing and billing software, as well as the pioneering JASRx® integrated disease state management module. JASRx® is now used by nearly 350 pharmacies in 39 states and Puerto Rico.
Marvin R. Richardson, President and CEO of Arcadia Resources, noted, “We have long been impressed by the capabilities of JASCORP and its JASRx® software package. As our Company increases its strategic emphasis on health care services, JASCORP will be integral to our efforts to change the delivery of retail pharmacy care. This acquisition will contribute more than $2 million of incremental revenues at an attractive EBITDA margin, reduce our cost to provide licensed pharmacy services, and most importantly improve our operating margins on the licensed service model significantly. In addition, this should provide a strong software infrastructure for the future growth of our business.”
John Dohmen, Chief Executive Officer of The F. Dohmen Co., commented, “Integrating JASCORP with Arcadia Resources is a logical combination of a notable pharmacy management software system with an innovator in retail health care services. We are proud of our role in developing JASRx® as a technological resource for the industry, and we’re pleased that we will continue to participate in the growth of the combined business as a shareholder of Arcadia Resources.” About Arcadia Resources
Arcadia Resources, Inc. is a national provider of alternate site health care services and products, including respiratory and durable medical equipment; non-medical and medical staffing, including travel nursing; a mail-order pharmacy; and catalog of healthcare-oriented products, also available for purchase on http://www.arcadiahomehealth.com and other leading retailer websites. Through industry partnerships, the Company is also establishing walk-in routine (non-emergency) medical clinics inside of retail stores. Arcadia's comprehensive solutions help organizations operate more effectively and with greater flexibility, while enabling individuals to manage illness and injury in the comfort of their own homes or through the convenience of local health care sites. For more information on the Company, visit our website: http://www.arcadiaresourcesinc.com.
Contact: Dan Fleshler at Kreab/Strategy XXI (212) 935-0210 or
Davis Hodge at Kreab/Strategy XXI (212) 935-0210
Any statements contained in this release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21A of the Securities Exchange Act of 1934, as amended and otherwise within the meaning of court opinions construing such forward-looking statements. The Company claims all safe harbor and other legal protections provided to it by law for all of its forward-looking statements. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, estimates, uncertainties and other factors, which could cause actual financial or operating results, performances or achievements expressed or implied by such forward-looking statements not to occur or be realized, including our estimates of consumer demand for our services and products, required capital investment, competition, and other factors. Actual events and results may differ materially from those expressed, implied or forecasted in forward-looking statements due to a number of factors. Important factors that could cause actual results to differ materially include, but are not limited to (1) our ability to compete with our competitors; (2) our ability to generate sufficient cash flow to meet our obligations on a timely basis, including obtaining additional debt or equity financing and/or restructuring existing indebtedness and financing accounts receivables, which may be difficult due to our history of operating losses and negative cash flows; although management believes that the Company's short-term cash needs can be adequately sourced, we cannot assure that such additional sources of financing will be available on acceptable terms, if at all, and an inability to raise sufficient capital to fund our operations would have a material adverse affect on our business and would raise substantial doubt about our ability to continue as a going concern; (3) the ability of our affiliated agencies to effectively market and sell our services and products; (4) our ability to procure product inventory for resale; (5) our ability to recruit and retain temporary workers for placement with our customers; (6) the timely collection of our accounts receivable; (7) our ability to attract and retain key management employees; (8) our ability to timely develop new services and products and enhance existing services and products; (9) our ability to execute and implement our growth strategy; (10) the impact of governmental regulations; (11) marketing risks; (12) our ability to adapt to economic, political and regulatory conditions affecting the health care industry; (13) other unforeseen events that may impact our business; (14) our ability to successfully integrate acquisitions; and (15) the ability of our new management team to successfully pursue its business plan and the risk that the Company may be required to enact restructuring measures in addition to those announced on March 30, 2007. The forward-looking statements speak only as of the date hereof. Additional information that could materially affect the Company may be found in the Company's filings with the Securities and Exchange Commission. The Company disclaims any obligation to update or alter its forward-looking statements, except as may be required by law.
