Medical Alarm Concepts Enters Into Settlement Agreement Removing $845,092 of Debt From Balance Sheet
December 12 2013 - 8:00AM
Marketwired
Medical Alarm Concepts Enters Into Settlement Agreement Removing
$845,092 of Debt From Balance Sheet
KING OF PRUSSIA, PA--(Marketwired - Dec 12, 2013) - Medical
Alarm Concepts Holding, Inc. (OTC Pink: MDHI) today announces the
signing of a global settlement agreement with its debt holders and
management team, which will remove approximately $845,092 in debt
obligations from the Company's balance sheet and will allow for the
reversal of hundreds of thousands of dollars of derivative
liabilities. As a result, the Company will be debt free, except for
normal trade payables and patent related obligations, which are
mainly offset by a substantial asset.
"A little over two years ago we began the process of
restructuring the Company," commented Ronnie Adams, Company CEO.
"Our objective at that time was for the Company to emerge as one of
the few publicly traded small companies able to produce a
continually growing revenue stream, positive operating cash flow,
and a strong balance sheet. I am very happy to report to our
shareholders that as a result of the signing of this settlement
agreement, we have now achieved these goals. We are very optimistic
about our future as we believe we have built a strong company that
will continue to grow based on high quality monthly recurring
revenues."
Under the terms of agreement, the provider of the Company's
credit line will forgive the $479,355 balance, all holders of
convertible debt will convert all debt into common shares, and the
management team will waive all future anti-dilution rights in
exchange for an equity stake in the Company. Full details of the
agreement are available on the website of the Securities &
Exchange Commission.
Mr. Adams continued, "The removal of approximately $845,092 in
debt from our balance sheet is very important for us. Since the
beginning of 2012, we have drawn approximately $632,794 from our
credit line, which has been efficiently utilized to build inventory
to service our growing retail and Internet sales channels. We were
scheduled to begin making payments on the credit line as of
December 31, 2013, but with the entire balance being forgiven, we
will be able to focus all our resources on ensuring that the
dramatic turnaround we have seen in our business continues well
into the future. Very few companies are afforded the growth
opportunities that have been presented to us. We intend to take
full advantage of our significantly strengthened balance sheet and
our growing positive operational cash flow."
The implementation of the settlement agreement will, in addition
to eliminating the $479,355 balance due on the credit line, remove
all convertible debt from the balance sheet, equaling an additional
debt reduction of approximately $365,737. As the convertible debt
is removed from the balance sheet, the full balance of the
derivative liabilities will be reversed and removed from the
balance sheet. As of the end of Fiscal 2012, the derivative
liabilities balance was $1,099,300.
Over the coming days, the Company will be providing investors
with additional updates about the dramatic turnaround in the
business, and will also discuss the development of a new medical
alarm device that is currently being engineered and will complement
its existing MediPendant®.
About MDHI
Medical Alarm Concepts Holdings, Inc. is the manufacturer of the
MediPendant® personal medical alarm. The MediPendant® is a patented
two-way voice technology enabling the user to speak and listen
directly through the pendant no matter where the user may be in and
around their home. MediPendant® service also includes advanced
features such as three-way calling that enables the operator to
link loved ones directly into the emergency call in real time. A
standard PERS system does not enable the user to speak and listen
through the pendant, thus limiting them to a small area in their
home. For more information on the MediPendant®, please visit
www.medipendant.com.
Safe Harbor Statement Statements in this press
release that are not statements of historical or current fact
constitute "forward-looking statements." Such forward-looking
statements involve known and unknown risks, uncertainties and other
unknown factors that could cause the Company's actual operating
results to be materially different from any historical results or
from any future results expressed or implied by such
forward-looking statements. In addition to statements that
explicitly describe these risks and uncertainties, readers are
urged to consider statements that contain terms such as "believes,"
"belief," "expects," "expect," "intends," "intend," "anticipate,"
"anticipates," "plans," "plan," to be uncertain and
forward-looking. The forward-looking statements contained herein
are also subject generally to other risks and uncertainties that
are described from time to time in the Company's filings with
Securities and Exchange Commission.
Medical Alarm Concepts Holding, Inc. 877-639-2929 Ext. 113
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