Southern Home Medical Equipment Signs $4 Million Invoice Funding Package With Capital Business Funding
SPARTANBURG, S.C., May 17 /PRNewswire-FirstCall/ -- Southern Home Medical Equipment, Inc. (Pink Sheets: SHMM) is pleased to announce that the Company has signed an invoice funding package, worth $4 million, with Capital Business Funding. The agreement stipulates that Capital Business Funding will purchase commercial invoices from Southern Home Medical at a discount. The process is called "factoring" and it will grant Southern Home Medical immediate access to cash that is normally tied up for 30, 60 or 90 days in accounts receivable. This funding package has been put in place to support the growth and development of Encore Medical Staffing, Inc. The website for Capital Business Funding is http://www.cbfunding.com/.
"This agreement will allow us to accept and set up new accounts within twenty-four hours, which is critical in the medical staffing industry. One of our strengths will be the ability to remain agile in the market while offering considerable accounting support for our existing and future clients," stated Greg Tucker, President and CEO of Southern Home Medical Equipment, Inc.
Southern Home Medical recently announced the retiring of 10 million shares of common stock. Upon the completion of the retirement, the Company now has an estimated 51 million shares outstanding.
Additionally, Southern Home Medical recently completed the closing of Adaptive Medical Upstate, Inc., a durable medical equipment company located in Lyman, SC. As of May 1, 2007, all of Adaptive Medical's clients became Southern Home Medical clients. Adaptive Medical generated more than $800,000 in revenue in 2006. With the closing of Adaptive Medical, the Company is currently billing out approximately $103,000 in revenues each month.
About Southern Home Medical Equipment, Inc.:
Southern Home Medical is a holding company with a focus on medical equipment operations in the Southeastern United States. Formed in January 2005, with its principal place of business in Spartanburg, S.C., Southern Home Medical will be expanding its operations through the acquisition of existing durable medical equipment companies and through the start up of additional sites in strategic locations throughout the Southeast. Southern Home Medical provides "in-home" and nursing home patients with a complete line of medical equipment that includes: oxygen concentrators, semi-electric beds, wheelchairs, CPAPs, BiPAPs, enteral tube feeding, etc. Through its Encore Health & Wellness Division, Southern Home has also moved into additional health, wellness, and fitness related businesses to include Encore Medical Staffing, Inc. and Ladies Health & Fitness, Inc.
Safe Harbor: This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation,
ability to obtain financing and regulatory and shareholder approval for anticipated actions.
Southern Home Medical Equipment, Inc.
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First Call Analyst:
Source: Southern Home Medical Equipment, Inc.
CONTACT: Southern Home Medical Equipment, Inc. Investor Relations,
1-866-THE-APPL(E); or Nick Iyer of Digital Wall Street, Inc., 1-800-4-WALL-ST,
for Southern Home Medical Equipment, Inc.