AAC Holdings Finalizing Agreement with Lenders and Finalizing Appointment of New Independent Board Members
BRENTWOOD, Tenn., Oct. 23, 2019 — AAC Holdings, Inc. (NYSE: AAC) today announced that as a result of continued positive discussions with the Company’s senior secured lenders, the Company expects to enter into an agreement securing additional liquidity and receiving a forbearance from its senior secured lenders regarding certain previous events of default. The Company expects to finalize the agreement with its senior secured lenders next week, although no assurance can be made that an agreement will result from these discussions within that time frame or that an agreement consistent with these discussions will be reached at all.
The Company is also in the process of finalizing the appointment of three additional independent members to its Board of Directors. The new members would join AAC CEO Michael Cartwright, Vaco Holdings CEO Jerry Bostelman, and Burch Investment Group CEO Lucius Burch on the board. Although the Company expects to finalize these appointments next week, no assurance can be made that the Company will be able to finalize any or all of these appointments within that time frame or at all.
About American Addiction Centers
American Addiction Centers is a leading provider of inpatient and outpatient substance abuse treatment services. We treat clients who are struggling with drug addiction, alcohol addiction, and co-occurring mental/behavioral health issues. We currently operate substance abuse treatment facilities located throughout the United States. These facilities are focused on delivering effective clinical care and treatment solutions. For more information, please find us at AmericanAddictionCenters.org or follow us on Twitter @AAC_Tweet.
Forward Looking Statements
This release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are made only as of the date of this release. In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “may,” “potential,” “predicts,” “projects,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements in this release include statements regarding AAC Holdings, Inc.’s (collectively with its subsidiaries; “AAC Holdings” or the “Company”) ability to successfully negotiate an agreement securing additional liquidity and receiving a forbearance from its senior secured lenders, and the Company’s ability to appoint three additional independent members to its Board of Directors. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual result or timing to be materially different from the information contained in any forward-looking statements. These risks, uncertainties and other factors include, without limitation: (i) the Company’s inability to meet the covenants in the Company’s loan documents or lack of borrowing capacity; (ii) the Company’s inability to enter into forbearance agreements and amendments with its lenders with respect to certain events of default on terms acceptable to the Company in a timely matter, or at all; (iii) the Company’s inability to successfully raise capital to meet the Company’s liquidity needs and to allow it to continue to operate as a going concern; (iv) the Company’s inability to finalize the appointment of, and complete onboarding procedures for, one or more additional independent directors to its Board of Directors within the time frame indicated or at all; (v) the Company’s inability to effectively operate its facilities; (vi) the Company’s reliance on its sales and marketing program to continuously attract and enroll clients; (vii) a reduction in reimbursement rates by certain third-party payors for inpatient and outpatient services and point-of-care and definitive lab testing; (viii) the Company’s failure to successfully achieve growth through acquisitions and de novo projects; (ix) risks associated with estimates of the value of accounts receivable or deterioration in collectability of accounts receivable; (x) a failure to achieve anticipated financial results from contemplated and prior acquisitions; (xi) the possibility that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of an acquisition; (xii) the Company’s failure to achieve anticipated financial results from contemplated and prior acquisitions; (xiii) a disruption in the Company’s ability to perform diagnostic laboratory services; (xiv) maintaining compliance with applicable regulatory authorities, licensure and permits to operate the Company’s facilities and laboratories; (xv) a disruption in the Company’s business and reputational and economic risks associated with the civil securities claims brought by shareholders or claims 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, including conditions in the debt and equity capital markets in particular, 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. As a result of these factors, we cannot assure you that the forward-looking statements in this release will prove to be accurate. Investors should not place undue reliance upon forward-looking statements.