LOS ANGELES, May 1, 2017 /PRNewswire/ -- Catasys, Inc. (NASDAQ: CATS), a provider of proprietary predictive analytics
Shamus, LLC, a company owned by David E. Smith, a member of the Company's board of directors, converted $1,325,775 of debt to equity.
Acuitas Group Holdings, LLC, which is owned by Terren Peizer, Chairman and Chief Executive Officer of the Company, converted convertible debenture $4,293,198 to equity.
Mr. Peizer also converted $1,121,924 of deferred compensation to equity.
In addition, Mr. Peizer, through Acuitas Group, purchased 181,154 shares of common stock for $869,539 through the public offering last week.
"In order to further enhance the financial strength of Catasys, the Company's convertible debt holders, including myself and fellow board member David Smith, have converted all of the $5.6 million in outstanding debt to shares of common stock at the same terms as the recent secondary offering. In addition, I have converted $1.1 million of deferred compensation to common stock. As a result, we have removed approximately $6.7 million of liabilities from the Company's balance sheet," stated Terren Peizer, Chairman of the Board and Chief Executive Officer. "I also increased my commitment to Catasys last week by increasing my position as the largest individual investor in the Company with a $900K investment in the secondary offering. In total, I have now invested more than $20 million into the Company, most of which has occurred within the past two years. My confidence in Catasys as an investor and CEO continues to grow as we rollout new OnTrak programs for some of the largest healthcare plans in the U.S. As with most healthcare companies, it has taken us many years to get to the point where we are ramping customer programs with enrollment of participants in the OnTrak program."
"The conversion of these liabilities, combined with the $15 million capital raise completed last week, allows us to advance Catasys' business strategy with much greater financial flexibility. We believe that with this enhanced financial standing and the listing of our common stock on the NASDAQ stock exchange, Catasys is a more attractive investment opportunity for a much broader group of investors," concluded Peizer.
About Catasys, Inc.
Catasys, Inc. provides big data based analytics and predictive modeling driven behavioral healthcare services to health plans and their members through its OnTrak solution. Catasys' OnTrak solution--contracted with a growing number of national and regional health plans--is designed to improve member health and, at the same time, lower costs to the insurer for underserved populations where behavioral health conditions cause or exacerbate co-existing medical conditions. The solution utilizes proprietary analytics and proprietary enrollment, engagement and behavioral modification capabilities to assist members who otherwise do not seek care through a patient-centric treatment that integrates evidence-based medical and psychosocial interventions along with care coaching in a 52-week outpatient treatment solution.
OnTrak is currently improving member health and, at the same time, is demonstrating reduced inpatient and emergency room utilization, driving a more than 50 percent reduction in total health insurers' costs for enrolled members. OnTrak is currently available to members of several leading health plans in Florida, Georgia, Illinois, Kansas, Kentucky, Louisiana, Massachusetts, Missouri, New Jersey, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia and Wisconsin. For further information, please visit catasys.com.
Except for statements of historical fact, the matters discussed in this press release are forward-looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond our control, which may cause actual results to differ materially from stated expectations. These risk factors include, among others, changes in regulations or issuance of new regulations or interpretations, limited operating history, our inability to execute our business plan, increase our revenue and achieve profitability, lower than anticipated eligible members under our contracts, our inability to recognize revenue, lack of outcomes and statistically significant formal research studies, difficulty enrolling new members and maintaining existing members in our programs, the risk that treatment programs might not be effective, difficulty in developing, exploiting and protecting proprietary technologies, intense competition and substantial regulation in the health care industry, the risks associated with the adequacy of our existing cash resources and our ability to continue as a going concern, our ability to raise additional capital when needed and our liquidity. You are urged to consider statements that include the words "may," "will," "would," "could," "should," "believes," "estimates," "projects," "potential," "expects," "plan," "anticipates," "intends," "continues," "forecast," "designed," "goal," or the negative of those words or other comparable words to be uncertain and forward-looking. For a further list and description of the risks and uncertainties we face, please refer to our most recent Securities and Exchange Commission filings which are available on its website at http://www.sec.gov. Such forward-looking statements are current only as of the date they are made, and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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SOURCE Catasys, Inc.
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