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Exhibit 99.1
FOR IMMEDIATE RELEASE Contact: Brad Hollinger, CEO
Clint Fegan, CFO
(717) 796-6100
BALANCED CARE ANNOUNCES $8.0 MILLION LOAN
AND POSSIBLE ACQUISITION NEGOTIATIONS
Mechanicsburg, PA, November 7, 2000----Balanced Care Corporation (AMEX:BAL), an
integrated operator of assisted living communities and related services,
announced today that it has completed an agreement with IPC Advisors S.a.r.l.
("IPC") the owner of 53% of the common stock of the Company and HR Investments
Limited, RH Investments Limited and VXM Investments Limited (collectively
"Lenders") whereby the Lenders will loan the Company $8.0 million. The loan has
a maturity date of January 31, 2001. Proceeds will be used to meet loan
maturities and working capital obligations. The loan will be secured by a pledge
of the stock of certain of the Company's subsidiaries.
The Company also announced that a special committee made up of certain of the
independent members of its Board of Directors ("Special Committee") has entered
into discussions with IPC regarding a possible proposal to acquire the shares of
common stock not already owned by IPC or its affiliates. IPC has indicated to
the Special Committee that it would consider a cash offer of $1.00 per share and
the Company has amended the Standstill Agreement between the Company and IPC to
enable IPC to make such a proposal. The Special Committee has received an
opinion from Raymond James and Associates, Inc., its financial advisors, to the
effect that, subject to certain assumptions, limitations and qualifications,
cash consideration of $1.00 per share is fair to the stockholders of the Company
from a financial point of view. In consideration for the Lenders making the loan
described above and for IPC incurring time and expense in performing due
diligence in connection with a possible proposal, the Company has agreed,
subject to the fiduciary duties of the Company's Board, not to solicit,
participate in discussions or negotiations concerning or furnish information to
any person other than IPC in connection with any possible acquisition proposal
of such a person until January 15, 2001.
The Company
Balanced Care currently operates 67 facilities with system-wide capacity of
4,621 residents. When the remaining facility currently under construction is in
operation, the Company will operate 68 facilities with resident capacity of
4,727.
Balanced Care Corporation utilizes assisted living facilities as the primary
service platform to provide an array of health care
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and hospitality services, including preventive care and wellness, medical
rehabilitation, Alzheimer's/dementia care and, in certain markets, extended care
services.
Except for the historical information contained in the press release, the
matters discussed herein contain forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to differ
materially from expectations. These include risks associated with, among other
things, substantial debt and operating lease payment obligations, managing rapid
expansion, the need for additional financing, the possibility of rising interest
rates, securing necessary licensing and permits, construction delays, cost
increases on new construction and increased competition. These and other risks
are set forth in the Company's Annual Report on Form 10-K (as amended) for the
fiscal year ended June 30, 2000 and other reports filed with the Securities and
Exchange Commission.
