AAC Holdings, Inc. Executives Enter into Prearranged Stock Trading Plans

BRENTWOOD, Tenn.--(BUSINESS WIRE)-- AAC Holdings, Inc. (NYSE: AAC) announced that pursuant to guidelines specified by Rule 10b5-1 under the Securities Exchange Act of 1934 and AAC’s policies with respect to insider sales, Michael Cartwright, the Company’s Chairman and Chief Executive Officer, Kirk Manz, the Company’s Chief Financial Officer, and Jerrod Menz, the Company’s former President, have adopted prearranged stock trading plans as part of their individual long-term strategies for asset diversification and tax planning.

Rule 10b5-1 permits corporate officers, directors and other insiders of public companies to adopt written, prearranged stock trading plans for selling specified amounts of stock. The plans may be adopted only when the individual is not in possession of material, non-public information and may be used to gradually diversify investment portfolios and to minimize the market effect of stock sales by spreading them out over an extended period of time.

Under the 10b5-1 plans, Mr. Cartwright may sell up to 550,000 shares, Mr. Manz may sell up to 54,250 shares, and Mr. Menz may sell up to 470,000 shares, all of which are subject to certain predetermined minimum price conditions, over a period of one year. The total shares to be sold represent less than 10% of the outstanding holdings for each of the respective sellers. The transactions under these plans will commence no earlier than March 14, 2016 and will be disclosed publicly through required Form 144 and Form 4 filings with the Securities and Exchange Commission.

Prior to any stock sales under the plan, Mr. Cartwright and related family trusts collectively own 5,726,666 shares of AAC’s stock, Mr. Manz and related family trusts own 563,638 shares, and Mr. Menz and related family trusts collectively own 4,922,821 shares. Assuming the complete sale of stock under these plans, Mr. Cartwright, Mr. Manz and Mr. Menz will collectively own approximately 44% of AAC Holdings’ outstanding stock, as compared with 49% currently.

About American Addiction Centers

American Addiction Centers is a leading provider of inpatient substance abuse treatment services. We treat clients who are struggling with drug addiction, alcohol addiction, and co-occurring mental/behavioral health issues. We currently operate 18 substance abuse treatment facilities. Located throughout the United States, these facilities are focused on delivering effective clinical care and treatment solutions. For more information, please find us at AmericanAddictionCenters.org or follow us on Twitter @AAC_Tweet.

Forward Looking Statements

This release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are made only as of the date of this release. In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “may,” “potential,” “predicts,” “projects,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements may include information concerning AAC Holdings, Inc.’s (collectively with its subsidiaries; “Holdings” or the “Company”) possible or assumed future results of operations, including descriptions of Holdings’ revenues, profitability, outlook and overall business strategy. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results and performance to be materially different from the information contained in the forward-looking statements. These risks, uncertainties and other factors include, without limitation: (i) our inability to operate our facilities; (ii) our reliance on our sales and marketing program to continuously attract and enroll clients; (iii) a reduction in reimbursement rates by certain third-party payors for inpatient and outpatient services and point of care and definitive lab testing; (iv) our failure to successfully achieve growth through acquisitions and de novo expansions; (v) uncertainties regarding the timing of the closing of acquisitions; (vi) the possibility that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of acquisitions; (vii) our failure to achieve anticipated financial results from prior or pending acquisitions; (viii) a disruption in our ability to perform definitive drug testing services; (ix) maintaining compliance with applicable regulatory authorities, licensure and permits to operate our facilities and lab; (x) a disruption in our business related to the recent indictment of certain of our subsidiaries and current and former employees, including a former senior executive; (xi) our inability to agree on conversion and other terms for the balance of convertible debt; (xii) our inability to meet our covenants in the loan documents; (xiii) our inability to obtain senior lender consent to exceed the current $50 million limit in unsecured subordinated debt; (xiv) our inability to integrate newly acquired facilities; (xv) a disruption to our business and reputational and potential economic risks associated with the civil securities claims brought by shareholders; and (xvi) general economic conditions, as well as other risks discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K, and other filings with the Securities and Exchange Commission. As a result of these factors, we cannot assure you that the forward-looking statements in this release will prove to be accurate. Investors should not place undue reliance upon forward looking statements.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160308005609/en/

SCR Partners
Investor Contact:
Tripp Sullivan, 615-760-1104
[email protected]
or
Media Contact:
Cynthia Johnson, 615-587-7728
[email protected]

Source: AAC Holdings, Inc.

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