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Exhibit 99.1
MAXICARE ANNOUNCES COMPLETION OF THE SUBSCRIPTION PERIOD FOR ITS RIGHTS OFFERING
AND RECEIPT OF SUBSCRIPTIONS FOR $22 MILLION
LOS ANGELES -- October 9, 2000 -- Maxicare Health Plans, Inc. (NASDAQ NM:MAXI;
the "Company") announced today that the subscription period for its Rights
Offering (the "Rights Offering") expired as of 5:00 p.m., New York City time, on
Friday, October 6, 2000.
The subscription agent has received subscriptions (including over-subscriptions)
from shareholders for an amount in excess of $22 million. The Minimum
Subscription of $14 million has been realized.
As previously announced, the Company, through the Rights Offering, granted to
its shareholders of record as of September 14, 2000, non-transferable rights to
purchase at $1.00 per share 1-1/2 shares of the Company's common stock for each
share of common stock owned by such shareholders on such date, as well as
certain over-subscription rights contingent upon availability. Those
shareholders who exercised their over-subscription rights will not be subject to
a pro-ration.
Paul Dupee, Chairman and Chief Executive Officer of the Company, stated, "We are
pleased with the results of the Rights Offering and grateful for the continued
support of our shareholders in endorsing our efforts to strengthen the capital
resources of the Company and to fund infrastructure enhancements."
Shareholders who have any questions concerning the Rights Offering should
contact the Company's information agent for the Rights Offering, MacKenzie
Partners at 800/322-2885 (toll free) or 212/929-5500 (call collect).
Maxicare Health Plans, Inc. is a managed health care company with operations in
California and Indiana. Its health care plans currently have approximately
430,000 members. The Company also offers various employee benefit packages
through its subsidiaries Maxicare Life and Health Insurance Company and
HealthAmerica Corporation.
This press release is not an offer to sell or a solicitation of an offer to buy
any securities of the Company. Any such solicitation or offer may only be made
through a prospectus which has been declared effective by the Securities and
Exchange Commission.
