Comprehensive Care to Offer Private Shares

Comprehensive Care Corp. said Friday that it will proceed with a plan to raise cash by issuing about 650,000 shares to private investors.

The health-care management company said its audit committee decided on the private issue rather than a public sale of stock because delays would have seriously jeopardized the company’s financial viability.

It said the sale should allow it to finance profitable operations, close unprofitable ones and satisfy past tax obligations on favorable terms.

Comprehensive Care said it did not seek shareholder approval for the sale after receiving an exemption from the New York Stock Exchange. The shares will not be registered under the Securities Act of 1933 pursuant to exemptions for private transactions, the company said.

The sale could involve securities convertible into stock, it said, adding that the shares would not be publicly offered or sold by the company.

The private investors were not identified.

Comprehensive Care, based in Newport Beach, provides managed health care and behavioral health care nationwide.

In Friday’s trading on the New York Stock Exchange, the company’s stock closed unchanged at $5.75 a share.