Emageon Receives Escrowed Funds and Terminates Merger Agreement
February 13 2009 - 7:00AM
PR Newswire (US)
BIRMINGHAM, Ala., Feb. 13 /PRNewswire-FirstCall/ -- Emageon Inc.
(NASDAQ: EMAG), a leader in enterprise medical information
technology systems for hospitals and health care networks,
announced today that it has received the $9 million that had been
placed in escrow with The Bank of New York Mellon by Health Systems
Solutions, Inc. (OTC:HSSO) (BULLETIN BOARD: HSSO) in connection
with the parties' merger transaction. The escrowed funds became
payable to Emageon when the merger was not consummated before the
close of business on February 11, 2009. Emageon also announced that
it has terminated its amended merger agreement with Health Systems
due to Health Systems' failure to receive all necessary financing
on or before the designated closing date of February 11, 2009.
Emageon continues to evaluate its options in response to these
developments. About Emageon Emageon provides information technology
systems for hospitals, healthcare networks and imaging facilities.
Its enterprise family of solutions includes RadSuite(TM),
HeartSuite(TM) and other specialty suites. All Emageon solutions
are built on a unified Enterprise Content Management system
offering advanced visualization and infrastructure tools for the
clinical analysis and management of digital medical images, reports
and associated clinical content. Emageon's standards-based
solutions are designed to help customers enhance patient care,
automate workflow, lower costs, improve productivity and provide
better service to physicians. For more information, please visit
http://www.emageon.com/. Cautionary Note Regarding Forward-Looking
Statements Certain statements contained in this press release
regard matters that are not historical facts and are
forward-looking statements within the meaning of the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995,
as amended, including statements regarding expectations as to the
completion of the merger and other transactions contemplated by the
merger agreement, Emageon's intentions or plans to enforce its
rights under the merger agreement and the outcome of the litigation
referred to in this release. These statements are often identified
by the use of forward-looking words such as "believe," "expect,"
"potential," "continue," "may," "will," "should," "could," "would,"
"intend," "plan," "estimate," "anticipate" and comparable words or
the negative version of these and other words. Because such
forward-looking statements contain risks and uncertainties, actual
results may differ materially from those expressed in or implied by
such forward-looking statements. Factors that could cause actual
results to differ materially include, but are not limited to: the
occurrence of any event, change or other circumstance that could
give rise to the termination of the merger agreement and the
possibility that Emageon could be required to pay a $3.0 million
termination fee in connection therewith; the outcome of any legal
proceedings that have been or may be instituted against Emageon and
others related to the merger agreement; the failure to satisfy any
conditions to the completion of the merger; the failure to obtain
the necessary financing set forth in the debenture purchase
agreement with SIBL to be received in connection with the merger;
risks that the proposed transaction disrupts current plans and
operations and the potential difficulties in employee retention as
a result of the merger; risks regarding a loss of or decrease in
purchases by Emageon's major customers as a result of the merger;
the ability to recognize the benefits of the merger; and the amount
of the costs, fees, expenses and charges related to the merger and
the actual terms of the financing that will be obtained for the
merger. The business of Emageon is also subject to a number of
risks generally such as: competition from larger competitors; risks
associated with a history of operating losses; reliance on
continuing relationships with large customers; the risk of
significant product errors or product failures; reliance on
reseller arrangements for important components of its solution; the
risk of not responding effectively to changes in its industry;
customers' reliance on third party reimbursements; risks regarding
the potential impact on its business of FDA regulations and other
applicable health care regulations; and other risks that are set
forth in the "Risk Factors," "Legal Proceedings" and "Management
Discussion and Analysis of Results of Operations and Financial
Condition" sections of, and elsewhere in, the filings that Emageon
makes with the Securities and Exchange Commission. Many of the
factors that will determine the outcome of the subject matter of
this press release are beyond Emageon's ability to control or
predict. Emageon undertakes no obligation to release publicly the
results of any revisions to these forward-looking statements that
may be made to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events, except
as required by law. DATASOURCE: Emageon Inc. CONTACT: Investor,
John Wilhoite, CFO, +1-205-980-9222, , or Media, Bill Funderburk,
Director, Marketing & Public Relations, +1-205-980-7542, , both
of Emageon Inc. Web site: http://www.emageon.com/
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