Electromedical Issues Shareholder Letter from the CEO on the Road Ahead for 2022

 

SCOTTSDALE, AZ -- January 13, 2022 -- InvestorsHub NewsWire -- Electromedical Technologies, Inc. (OTC: EMED) ("Electromedical" or the "Company"), a pioneer in the development and manufacturing of bioelectronic devices, is pleased to issue the following Annual Letter to Shareholders from the Company's Chief Executive Officer:

 

Dear Valued Shareholder,

Let me first express our tremendous gratitude to you for your loyalty, patience, and commitment as we work to drive lasting success and achieve our vision at Electromedical Technologies, Inc. The path hasn't always been easy, but we currently find ourselves on the doorstep of a very exciting new chapter in the Company's history.

The Company reached several key financial and operational milestones in 2021.

  • We improved our financial position by significantly reducing our outstanding variable convertible debt. This puts us in a better position to utilize our financial resources to expand our production capacity, strengthen our balance sheet and enhance our bottom line, as well as provide protection for market dilution to preserve shareholder value.
  • We further strengthened our financial position, by obtaining an equity line capable of providing the necessary capital to drive product research and development, with terms that are more favorable than past financings. We recently filed a Form S-1 registration statement for this financing, and expect to receive the SEC's notice of effectiveness soon.
  • Finally, while we have yet to publish fully audited financial data for the year, I expect that the Company will deliver strong topline growth in 2021, compared to our 2020 financial performance.

On the operations side, 2021 was also a tremendous year of progress in laying a foundation for future growth.

  • Most importantly, we achieved a critical milestone in the development of our Wellness Pro POD Prototype, and are now in the functionality testing stage. Our completion of this more affordable and easy-to-use device is our primary operational milestone in 2022, and we expect it to exponentially enhance our operating results. We look forward to submitting our WellnessPro POD working prototype for SGS laboratory testing and regulatory submission this year and are targeting the middle of 2022.

In addition, 2021 saw the onboarding of 110 new independent sales representatives, which should act as a strong tailwind for future sales growth in the quarters ahead. This important step was accompanied by our completion of an online medical representative training program to improve and expedite the training process, ultimately seeding the field for further gains in market share.

Looking ahead, 2022 lines up as another exciting year of progress for Electromedical.

In the year ahead, we will continue our efforts to expand both our Board of Directors and our Advisory Board, with qualified, strategically valuable, and independent minds to help us maximize our value proposition as an emerging leader in the drug-free medical solutions space.

We are committed to fostering new relationships and cultivating new strategic distribution partnerships to broaden our marketing and distribution reach. We plan to continue to drive gains in the size of our medical device sales rep team to capitalize on that widening reach. Additionally, we are on the lookout for strategically aligned target companies to acquire that are interested in an M&A opportunity.

On the production side, we are currently in the process of negotiating with a North American production resource, which will help to mitigate overseas supply disruptions, decrease supply chain lead times, and drive down shipping costs. This step has the potential to significantly improve our unit economics and our ability to quickly scale up production at a time when we are poised to drive potentially substantial gains in product demand and sales volume.

In summary, the market opportunity for a drug-free medical solution for pain relief has, if anything, only continued to grow in the past year. As a result of the pandemic, people are becoming increasingly conscious of their health and the importance of pursuing a healthier drug-free lifestyle.

According to the National Center for Health Statistics, the opioid epidemic grew by 31% in 2020. Almost 100,000 people died as a result of related overdose and drug interaction issues. The situation seems to have worsened in 2021. The demand for opioid alternatives for pain treatment should continue to fuel significant gains in broad public demand for drug-free pain treatments. This trend dovetails with continued growth in adoption of wearable technologies of all kinds, creating a strong tailwind for the launch of our next-generation solution.

Electromedical Technologies has positioned itself as an emerging leader in meeting that market opportunity. We are committed to helping people live pain free and enjoy a better quality of life with our technology in the quarters and years ahead.  

 

Best Regards,

Matthew Wolfson, CEO

 

About Electromedical Technologies
Headquartered in Scottsdale, Arizona, Electromedical Technologies, Inc. is a commercial stage, FDA cleared, bioelectronic medical device manufacturing company initially focused on the treatment of various chronic, acute, intractable, and post-operative pain conditions. Through University collaboration agreements, the Company is working to develop a comprehensive research program in defining the effects of electro-modulation on the human body. By studying the impacts of electrical fields in cell signaling and effects on virus assembly and immune responses, the Company's goal is to reduce pain and improve overall human wellbeing. The Company's current FDA cleared product indications are for chronic acute post traumatic and post-operative, intractable pain relief. 

For more information, please visit www.electromedtech.com.

Note: Nonhuman preliminary studies that we are planning to start in the near future and their applications are not related to our current product in any way and are currently not cleared in the US.

 

Safe Harbor Statement
This release contains forward-looking statements that are based upon current expectations or beliefs, as well as a number of assumptions about future events. Although we believe that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, we can give no assurance or guarantee that such expectations and assumptions will prove to have been correct. Forward-looking statements are generally identifiable by the use of words like "may," "will," "should," "could," "expect," "anticipate," "estimate," "believe," "intend," or "project" or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties, including but not limited to: adverse economic conditions, competition, adverse federal, state and local government regulation, international governmental regulation, inadequate capital, inability to carry out research, development and commercialization plans, loss or retirement of key executives and other specific risks. To the extent that statements in this press release are not strictly historical, including statements as to revenue projections, business strategy, outlook, objectives, future milestones, plans, intentions, goals, future financial conditions, events conditioned on stockholder or other approval, or otherwise as to future events, such statements are forward-looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this release are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made.

 

Corporate Contact:
Electromedical Technologies, Inc.
Hanover International
Tel: 1.888.880.7888
Email: ir@electromedtech.com
https://electromedtech.com

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