CHARLOTTE, N.C., May 6, 2011 /PRNewswire/ -- MedCath Corporation (Nasdaq: MDTH) announced today it has completed the sale of its ownership interest and management agreement in Coastal Carolina Heart to New Hanover Regional Medical Center ( Wilmington, North Carolina). Coastal Carolina Heart is a component of the Company's MedCath Partners division and provides certain catheterization laboratory management services to New Hanover Regional Medical Center. Pursuant to transaction terms, MedCath received $5.0 million for its 9.2% ownership interest and management agreement in Coastal Carolina Heart. MedCath will also receive, over the next several months, it's pro rata share of the additional funds from the liquidation of the venture's working capital. MedCath anticipates that it will retain approximately $4.0 million from the transaction, after closing costs and taxes. Today's transaction is in addition to yesterday's related announcement that MedCath sold a significant portion of MedCath Partners operations valued at $25.0 million. MedCath anticipates retaining approximately $16.0 million from that transaction after collection of retained accounts receivable, payment of known liabilities, closing costs and taxes. About MedCath MedCath Corporation, headquartered in Charlotte, N.C., is a health care provider focused on high acuity services with the diagnosis and treatment of cardiovascular disease being a primary service offering. MedCath owns an interest in and operates six hospitals with a total of 533 licensed beds, located in Arizona, Arkansas, California, Louisiana, New Mexico and Texas. Parts of this announcement contain forward-looking statements that involve risks and uncertainties, including those relating to the amount of cash proceeds MedCath may receive from the sale of the Coastal Carolina Heart interests and potential unknown liabilities associated with that sale. Although MedCath's management believes that these forward-looking statements are based on reasonable assumptions, these assumptions are inherently subject to various risks that are difficult or impossible to predict accurately and, in some cases, are beyond MedCath's control. Actual results could differ materially from those projected in these forward-looking statements. MedCath assumes no obligation to update these statements in a news release or otherwise should material facts or circumstances change in ways that would affect their accuracy.
Shares of MedCath Corporation (Nasdaq:MDTH) were gapping down Friday morning with an open price 47.9% lower than Thursday's closing price. The stock closed at $14.07 yesterday and opened today's trading at $7.33.