HALIFAX,
Nov. 1, 2012 /CNW/ - MedMira Inc.,
(MedMira) (TSXV: MIR), a developer of rapid diagnostic technology
and solutions, announced today that it has completed debt
settlement arrangements with its debt holders and is no longer in a
default position on any of its loans.
Building on a debt reduction of $11,834,592 completed in June 2012, the Company paid an additional
$312,992 to eliminate a further
$1,021,503 in debt. The Company
has continued to improve its financial position with these new debt
holder agreements that will see interest-only payments during the
current fiscal year. Going forward, MedMira will be subject
to no debt interest rates above three percent.
"This latest round of debt elimination, together
with the previously negotiated agreements, represents a 60%
reduction in the Company's liabilities associated with promissory
notes, long-term debt, and convertible debentures," said
Daniel Frid, CFO, MedMira Inc.
"We have solidified agreements, which include reasonable interest
rates, with our remaining debt holders. This ensures MedMira
is no longer in default on any of its loans, increasing investor
and market confidence in the Company. These are significant
improvements supporting MedMira's financial health and a
fundamental piece of our corporate growth strategy."
MedMira is using its improved capital position
gained through this debt elimination program to advance long term
product development strategies and targeted market penetration with
its most advanced rapid testing solutions. Additionally, new
product commercialization and technology contracting activities are
on-going in order to diversify the Company's product offering and
fully leverage its patented diagnostic technology platform.
"We are pleased with the support of our debt
holders and shareholders alike, in enabling us to further
strengthen our financial position as we move forward with our
marketing and sales initiatives. We can now allocate appropriate
funds for increased sales and marketing expenditures, while
advancing product commercialization plans. Our improved position
also enables the Company to further expand our strategic
partnership program and continue relationship building with
organizations such as the US Army, WHO, and the United Nations,"
said Hermes Chan, CEO, MedMira Inc.
"With the support of key stakeholders in establishing a sustainable
financial platform for MedMira's growth and profitability strategy,
our targets for fiscal year 2013 are now within reach."
About MedMira
MedMira is a leading developer and manufacturer
of flow-through rapid diagnostics and technologies. The Company's
testing solutions provide hospitals, labs, clinics and individuals
with reliable, rapid diagnosis for diseases such as HIV and
hepatitis C in just three minutes. The company's tests are sold
under the Reveal®, Multiplo™ and Miriad brands in global markets.
MedMira's rapid flow-through HIV test is the only one in the world
to achieve regulatory approvals in Canada, the United
States, China and the
European Union. MedMira's corporate offices and manufacturing
facilities are located in Halifax, Nova
Scotia, Canada. For more information visit MedMira's website
at www.medmira.com.
This news release contains forward-looking
statements, including statements relating to growth in the
Company's business, earnings and profitability, and trends in
demand for the Company's products, which involve risk and
uncertainties and reflect the Company's current expectation
regarding future events including statements regarding possible
future growth and new business opportunities. Actual events
could materially differ from those projected herein and depend on a
number of factors including, but not limited to, changing market
conditions, successful and timely completion of clinical studies,
uncertainties related to the regulatory approval process,
establishment of corporate alliances and other risks detailed from
time to time in the company quarterly filings.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE MEDMIRA INC.