doublesys Engages Healthcare Investment Firm as Advisor for $10 Million in Debt and Equity Financing
Company Debt Converted into Equity
MIAMI, March 23, 2004 – doublesys Corporation (UPHD.PK) announced today it has engaged Bristol Investment Group, a New York-based healthcare investment banking boutique, as the company's advisor in order to raise up to $5 million in debt and $5 million in equity financing.
As part of the proposed financing, approximately $2.2 million of doublesys's existing debt will be converted into Series A Preferred Stock. doublesys's existing directors, officers and other related affiliates will subscribe to the majority of the debt conversion.
“Bristol investment Group has the healthcare investment banking expertise to advise us as we roll-out our unique Medicare managed care plans,” said Robert L. Trinka, doublesys's chairman and chief executive officer. “The proceeds of the financing will serve as working capital to complete the build-out of doublesys's corporate marketing and operations infrastructure and will capitalize our first health plans set to launch in Florida this year.”
Trinka founded doublesys in 2002 following more than 30 years of work with some of the largest companies in the insurance and managed healthcare industries. He previously served in senior management positions with Aon Healthcare Insurance Services (NYSE: AOC) and John Alden Financial Corporation, a division of Fortis Health and part of Assurant (NYSE: AIZ).
“Trinka and the members of doublesys's management team put their extensive managed healthcare and insurance expertise to work when they created the company,” said Arthur Whitcomb, Bristol Investment Group's managing director. “doublesys's approach to Medicare managed care is an ideal solution in light of today's Medicare challenges. Moreover, doublesys's business model is unique in that it is founded upon existing patient bases and physicians who elect to become part of doublesys's local health plans and the company's operating model.”
Trinka added, “With physicians' and patients' frustrations running high with the current Medicare and managed care system, we're moving forward with the formation of health plans that work for everyone. doublesys is the first managed healthcare company to tackle these frustrations head on by delivering to doctors the resources and expertise to build and govern their own health plans from a team of highly experienced managed healthcare and insurance industry professionals. Our model is built on the foundation of the physician-patient relationship. Physicians concentrate on managing the patient's health and making patient care decisions, and doublesys concentrates on managing the health plan machinery. We each do the job we're best at, and we align our incentives so that by working together we all win.”
doublesys develops and operates Medicare managed care plans that are predominantly owned and governed by physicians. With its turn-key approach, the company provides physicians with access to capital, risk-management expertise, infrastructure, information systems and other management resources for the formation and operation of doublesys Local Health Plans. doublesys's model enables physicians to focus on their primary responsibility: the management of their patients' health and the delivery of medical care.
Headquartered in Miami, doublesys is currently developing Medicare managed care plans in Florida and throughout the United States. For more information, visit www.doublesys.com or call 305.779.1779.
Information contained in this press release, other than historical information, should be considered forward-looking in nature and is subject to various risks or uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Such risks and uncertainties include, but are not limited to, doublesys's expectation of operating losses and negative cash flow for the foreseeable future. Other risk factors include doublesys's limited operating history, the unpredictability of doublesys's operating results, possible changes in federal and state regulations, reliance on future financing and key employees, as well as a competitive marketplace.