MedeFile Materially Strengthens Balance Sheet Through Equity Financing and Debt Conversion Totaling $4 Million
January 29 2008 - 8:48AM
PR Newswire (US)
Receives $1.95 Million in Net Cash Proceeds from Private Placement
of Restricted Stock and Warrants and Converts $2.1 Million of Debt
into Equity CEDAR KNOLLS, N.J., Jan. 29 /PRNewswire-FirstCall/ --
MedeFile International, Inc. (OTC:MDFI) (BULLETIN BOARD: MDFI) , a
company specializing in portable electronic medical records
management solutions, today announced that the Company received
total net proceeds of $1.95 million from three separate private
placement transactions. Specifically, transactions closed on
November 16, 2007 and January 22, 2008 yielded $1.79 million in
gross cash proceeds from the private placement of 11.9 million
restricted shares of common stock and warrants to purchase an
aggregate of 7.2 million restricted shares of common stock.
Detailed terms and conditions of these transactions may be found in
a related Form 8-K filed with the U.S. Securities & Exchange
Commission (SEC) on January 24, 2008 and available at
http://www.sec.gov/ or on the Company's web site, found at
http://www.medefile.com/corp/secfilings.asp. On January 28, 2008,
the Company received an additional $160,000 in gross proceeds from
the private placement of 1.1 million restricted shares of common
stock and warrants to purchase an aggregate of 640 thousand
restricted shares of common stock. In addition, MedeFile reported
that the Company's largest stockholder and primary creditor has
converted $2.1 million in debt into 14 million restricted shares of
MedeFile's common stock, thereby reducing the Company's
indebtedness to the stockholder from approximately $3.04 million to
approximately $940,000. In connection with the conversion, the
stockholder also received warrants to purchase an aggregate of 8.4
million restricted shares of the Company's common stock. Further
details related to this debt conversion may be found in the Form
8-K filed with the SEC on January 24, 2008. Milton Hauser, Chairman
and CEO of MedeFile, stated, "Collectively, these debt conversion
and equity transactions have served to materially strengthen our
balance sheet, while providing us with additional working capital
to help fund our strategic organic growth. This financing and debt
conversion will enable management to further its current sales and
marketing initiatives aimed at increasing the number of subscribers
to the MedeFile system. We look forward to keeping our shareholders
up-to-date on our achievements now and in the future." The
securities offered by MedeFile have not been registered under the
Securities Act of 1922 or any state securities laws. Therefore,
such securities may not be offered or sold in the United States
absent registration or an applicable exemption from the
registration requirements of the Securities Act of 1933 and any
applicable state securities laws. This press release does not
constitute an offer to purchase any securities of a solicitation of
an offer to sell any securities. About MedeFile International, Inc.
MedeFile has developed a proprietary system for gathering and
digitizing medical records so that individuals can have access to a
comprehensive set of their medical records. MedeFile's primary
product is the MedeFile system, a highly secure system for
gathering and maintaining medical records. The MedeFile system is
designed to gather all of its members' actual medical records and
create a single resource that is accessible 24 hours a day, seven
days a week. Representing an advanced, yet easy-to-use, approach to
portable, electronic medical records management, MedeFile combines
state-of-the-art technology and the Internet to make medical data
instantly accessible to each MedeFile subscriber and his or her
authorized healthcare providers from anywhere in the world. In
addition to accessing one's medical records through MedeFile's
secure Internet portal found at http://www.medefile.com/, members
can carry their entire medical history and emergency information
wherever they go on a unique device called a MedeDrive -- a
proprietary USB drive designed to be carried on a keychain. The
MedeDrive plugs into any USB port of a Windows- based PC; and
because MedeDrive automatically loads its own viewer, users do not
require any special programs or software to view data. MedeMobile
provides on-the-go subscribers with the ability to enjoy even
greater flexibility and access to their personal health information
wherever and whenever they need it. For more information about
MedeFile and the MedeFile system, visit http://www.medefile.com/.
Safe Harbor Statement Under the Private Securities Litigation Act
of 1995 With the exception of historical information, the matters
discussed in this press release are forward-looking statements that
involve a number of risks and uncertainties. The actual future
results of MedeFile could differ significantly from those
statements. Factors that could cause actual results to differ
materially include risks and uncertainties such as the inability to
respond to the evolving technological landscape, inability to
finance the Company's operations or expansion, inability to hire
and retain qualified personnel, competitive pressure, changes in
the general economic climate, including rising interest rates, and
unanticipated events such as terrorist activities. In some cases,
you can identify forward-looking statements by terminology such as
"may," "will," "should," "expect," "plan," "anticipate," "believe,"
"estimate," "predict," "potential" or "continue," the negative of
such terms, or other comparable terminology. These statements are
only predictions. Although we believe that the expectations
reflected in the forward-looking statements are reasonable, and
such statements should not be regarded as a representation by the
Company, or any other person, that such forward-looking statements
will be achieved. We undertake no duty to update any of the
forward-looking statements, whether as a result of new information,
future events or otherwise. In light of the foregoing, readers are
cautioned not to place undue reliance on such forward-looking
statements. For further risk factors associated with our Company,
review our SEC filings. FOR MORE MEDEFILE INFORMATION, PLEASE
CONTACT: Investors/Stockbrokers/Institutions/Media Elite Financial
Communications Group, LLC/Elite Media Group Dodi Handy, President
and CEO, or Daniel Conway, Chief Strategist 407-585-1080 or via
email at DATASOURCE: MedeFile International, Inc. CONTACT: Dodi
Handy, President and CEO, or Daniel Conway, Chief Strategist, both
of Elite Financial Communications Group, LLC-Elite Media Group,
+1-407-585-1080, Web site: http://www.medefile.com/
http://www.medefile.com/corp/secfilings.asp
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