Santa Monica, Calif. -- Recovery Network is getting
resuscitated through a cash infusion from a European investor, as well as some
belt-tightening, officials said last week.
Without disclosing the terms of the deal, Recovery has
entered into a letter of intent with the institutional investor, who wasn't named, to
raise funds via a private placement. Earlier this month, Recovery revealed that it was in
preliminary talks with several potential strategic partners. The network had hired
investment bank F. Howard Associates Inc. to look for investors, after disclosing in
December that it was almost out of cash.
Recovery also said last Thursday that it has significantly
cut its monthly overhead costs.
"Our efforts to reduce operating expenses have proven
successful," Recovery chairman Bill Moses said in a prepared statement. "This
capital infusion provides sufficient working capital for Recovery Network to complete its
restructuring, without any economic concerns to slow us down."