KING OF PRUSSIA, PA - December 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®.
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
SOURCE: Medical Alarm Concepts Holding, Inc