BRENTWOOD, Tenn .– (BUSINESS WIRE) – AAC Holdings, Inc. (NYSE: AAC) announced today that, based on ongoing positive discussions with the Company’s senior secured lenders, it expects to enter into an agreement to secure additional liquidity and a deferral from its senior secured lenders in relation to it to certain previous events of default. The Company expects to finalize the arrangement with its senior secured lenders next week, although there can be no assurance that any agreement will be reached out of these talks within this timeframe or that any arrangement will be made to match those talks.
The company is also in the process of finalizing the appointment of three additional independent directors to its board of directors. The new members would sit on the board along with AAC CEO Michael Cartwright, Vaco Holdings CEO Jerry Bostelman, and Burch Investment Group CEO Lucius Burch. While the company expects to complete these appointments next week, there can be no assurances that the company will be able to complete any or all of these appointments within this timeframe or at all.
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American Addiction Centers is a leading provider of inpatient and outpatient treatments for substance abuse. We treat clients struggling with drug addiction, alcohol addiction and concurrent mental / behavioral health problems. We currently operate substance abuse treatment facilities across the United States. These facilities focus on providing effective clinical care and treatment solutions. For more information, please find us at AmericanAddictionCenters.org or follow us on Twitter @AAC_Tweet.
This press release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements speak only as of the date of this publication. In some cases, you can refer to forward-looking statements using words such as “expects,” “believes,” “might,” “estimates,” “expects,” “might,” “potentially,” “predicted,” “projected,” “should”, ” “will”, “would” and similar expressions used to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements in this press release include statements regarding the ability of AAC Holdings, Inc. (together with its subsidiaries; “AAC Holdings” or the “Company”) to successfully negotiate an arrangement that will provide additional liquidity and a deferral of its priority secured company receives lenders and the ability of the company to appoint three additional independent directors to its board of directors. These statements involve known and unknown risks, uncertainties and other factors that could cause actual results or timing to differ materially from the information contained in the forward-looking statements. These risks, uncertainties, and other factors include, without limitation: (i) the Company’s inability to meet any obligations on the Company’s loan documents or its inability to borrow; (ii) the inability of the company to timely or at all enter into forbearance agreements and changes in relation to certain default events with its lenders on terms acceptable to the company; (iii) the Company’s inability to successfully raise capital to meet its liquidity needs and enable it to continue operating; (iv) the Company’s inability to complete the appointment of one or more additional Independent Directors to the Board of Directors within the specified time frame or at all to complete the onboarding process; (v) the company’s inability to operate its facilities effectively; (vi) the company’s reliance on its sales and marketing program to continually acquire and acquire customers; (vii) a reduction in reimbursement rates by certain third party payers for inpatient and outpatient services as well as point-of-care and definitive laboratory tests; (viii) the company’s failure to grow successfully through acquisitions and de novo projects; (ix) risks associated with estimates of the value of receivables or deterioration in the collectibility of receivables; (x) failure to achieve expected financial results from proposed and previous acquisitions; (xi) the possibility that any government agency may prohibit, delay, or withhold approval to complete an acquisition; (xii) the Company’s failure to achieve expected financial results from proposed and previous acquisitions; (xiii) a disruption in the Company’s ability to perform diagnostic laboratory services; (xiv) Comply with applicable regulatory agencies, licenses and permits to operate Company facilities and laboratories; (xv) a disruption of the Company’s business and reputational and economic risks in connection with civil securities lawsuits by shareholders or actions by various parties; (xvi) the company’s ability to maintain the listing of the company’s common stock on the NYSE; and (xvii) general economic and market conditions, particularly those in the debt and equity markets, 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. Because of these factors, we cannot guarantee that any forward-looking statements in this press release will prove to be correct. Investors should not place undue reliance on forward-looking statements.