Institutional Investors Purchase GMIL's Interest in Global Med Technologies(R), Inc. for $12 Million and Invest an Additional $1
December 20 2005 - 8:00AM
PR Newswire (US)
Transaction Eliminates $814 Thousand in Annual Interest and
Dividend Payments DENVER, Dec. 20 /PRNewswire-FirstCall/ -- Global
Med Technologies, Inc. (the Company" or "Global Med") (OTC:GLOB)
(BULLETIN BOARD: GLOB) announced that institutional investors
purchased the interest of Hong Kong-based Global Med International
Limited ("GMIL") in the Company for $12 million. The transaction
eliminates approximately $814 thousand in annual dividends and
interest and reduces the Company's total outstanding common shares
from 27,815,419 to 22,955,224. A more detailed description of the
transaction is set forth in the Company's report on Form 8-K, which
was filed with the SEC. (Logo:
http://www.newscom.com/cgi-bin/prnh/20040226/GLOBALMEDLOGO ) The
Company will receive $8 million from the investors for the purchase
of zero coupon convertible preferred stock with detachable warrants
and will use these proceeds to redeem or buy back the following
securities and debt from GMIL: 3,500,000 of Series AA Preferred
Stock; 11,186,430 warrants convertible into the same number of
common shares; 4,860,195 shares of Common Shares; and $528,700 in
Debt. The investors will also invest an additional $1.4 million in
zero coupon preferred stock with detachable warrants which will be
used by the Company for working capital. Some of the institutional
investors include Crestview Capital and Fusion Capital. None of the
investors are expected to be affiliates of the Company as a result
of their equity ownership in the Company after this transaction.
The Company's existing common stock purchase agreement with Fusion
Capital has been terminated by mutual agreement of the Company and
Fusion Capital in conjunction with this transaction. Under the
terms of the transaction, GMIL will immediately relinquish 6 board
seats. A search is currently underway to fill three of the vacated
board seats with independent directors. Michael I. Ruxin, M.D., the
Company's Chairman and CEO, stated, "The Company's business has
experienced double digit revenue growth over the past five
quarters. By eliminating all of the debt on the balance sheet
(except for an $80,000 capital lease), and the Series AA Preferred
Stock which paid 15% and 21% in interest and dividends,
respectively, redeeming 11,186,430 warrants and 4,860,195 common
shares, this financing virtually transforms Global Med's capital
structure." About Global Med Technologies, Inc. Global Med
Technologies, Inc. is an international e-Health, medical
information technology company, providing information management
software products and services to the healthcare industry. Its
Wyndgate Technologies division is a leading supplier of information
management systems to U.S. and international blood centers and
hospital transfusion centers. Current clients of Wyndgate's
products and services manage more than 3 million units of blood, or
over 22% of the U.S. blood supply, each year. Wyndgate's products
are being used in Canada and sub-Saharan Africa, and are being
implemented in the Caribbean. Together, the SafeTrace(R) donor
management system and the SafeTrace Tx(R)* advanced transfusion
management system provide Vein-to- Vein(R) tracking from donor
collection to patient transfusion. For more information about
Global Med's products and services, please call 800-WYNDGATE or
visit http://www.globalmedtech.com/, http://www.peoplemed.com/ and
http://www.wyndgate.com/. This news release may include statements
that constitute forward-looking statements, usually containing the
words "believe," "estimate," "project," "expects" or similar
expressions. These statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements. By making these
forward-looking statements, the Company undertakes no obligation to
update these statements for revisions or changes after the date of
this news release. *Patent Pending
http://www.newscom.com/cgi-bin/prnh/20040226/GLOBALMEDLOGO
http://photoarchive.ap.org/ DATASOURCE: Global Med Technologies,
Inc. CONTACT: Michael I. Ruxin, M.D. of Global Med Technologies(R),
Inc., +1- 303-238-2000; or John Nesbett or Mike Graff, both of The
Investor Relations Group, +1-212-825-3210, for Global Med
Technologies(R), Inc. Web site: http://www.globalmedtech.com/
Copyright