KING OF PRUSSIA, Pa.,
July 9, 2012 /PRNewswire/ -- Medical
Alarm Concepts Holding, Inc. (OTCQB: MDHI), today provided an
update on corporate developments for its investors.
Mr. Ronald Adams, MDHI President
commented, "The fundamentals of our company continue to
dramatically improve, and as a result, we are clearly trending
toward profitability. By keeping our operating expenses very low,
and increasing our brand exposure, we are likely to be profitable
by the end of the calendar year, and quite possibly by the end of
the 3rd quarter. At our current market
capitalization of less than $2.5
million, we believe our shares remain grossly
undervalued."
Mr. Adams continued, "The medical alarm space is a large one
that continues to grow. We now believe we have our company and
balance sheet on the right footings to capitalize on our patented
and vastly superior medical alarm product technology. We believe we
are now well on our way to success, and we are confident our
investors will see continued progress as we move closer to
profitability."
Investor updates include:
New Major Retail Partnership - The Company recently launched a
strategic alliance partnership with the largest warehouse club
store in the United States for
sales of the Company's MediPendant™ product. This program is now
operational with many orders being received and shipped on a daily
basis. The Company has recently completed a joint email-based
marketing campaign sponsored by this retailer, and several other
joint promotions have been scheduled for this summer and
fall. Additionally, a video describing the MediPendant™ and
its enhanced features has just been posted on the retailer's site,
and we feel this will drive additional traffic to our product
offering.
Major Fall Promotion – MDHI is currently gearing up to
participate in a major fall season promotion in conjunction with
this major retail partner. The retailer has forecasted a
sales figure of between 1,500 and 2,500 MediPendant™ units will be
purchased as a result of this special promotion. MDHI is currently
working with its manufacturing partner to secure the needed
inventory. Even at the low end of this forecasted range,
management is very optimistic about the company's
prospects.
2nd Quarter Shipments and 3rd Quarter
Outlook - As a result of restructuring the corporate marketing
direction, an injection of high quality financing, and recent major
distribution wins, order and shipment volumes continue to
grow. During the 2nd quarter the company shipped more than
4,000 MediPendant™ units, which was a several fold increase over
shipments during any previous quarter. Orders thus far in the
3rd quarter are robust with the company expecting to exceed the
record volumes shipped during the last quarter. Shipments for
the new European customer are expected in the 3rd
quarter and management is currently negotiating additional European
contracts.
Major Debt Restructuring - Over the past few quarters the
management team has been very successful in restructuring the
company's convertible debt. As a result, portions of the toxic
convertible debt and more than 100 million warrants have been
cancelled. Significantly more debt and warrant cancellations are
currently being negotiated and are expected by the end of the 3rd
quarter. All debt is now consolidated under one entity that
has a strong interest in the long-term viability of the company.
Important to this debt restructuring is a recently acquired credit
line of $750,000 that has enabled the
company to acquire needed inventory, renegotiate and extend the
patent license, and pay off virtually all of the company's
short-term trade receivables.
Current Outstanding Shares and Reporting Status – As a result of
debt conversations and settlements with toxic debt holders, there
are currently approximately 561 million outstanding common shares,
yielding a total market capitalization of under $2.5 million. Over recent periods, all of
the Series A preferred stock has been retired and virtually all of
the Series B preferred stock has been converted to common shares.
These retirements and conversions are included in the above
outstanding share count. The majority of the outstanding shares is
restricted from sale and can only be sold under SEC Rule 144, which
places limiting trading restrictions on holders, or through the
filing of a registration statement, for which management has no
plans. MDHI is a voluntary reporter with the SEC, but management
understands the importance of transparency. An accounting and
auditing review is expected to commence some time before the end of
the calendar year.
No Toxic Financing Commitment - The management team has made a
commitment to its investors not to accept any future financing with
any toxic or convertible stock or warrant features as they do not
believe such financing serve the interests of long-term investors
or management team members.
About MDHI
Medical Alarm Concepts Holdings, Inc. (MAC) develops and
manufactures innovative products and practical solutions within the
framework of a vast growing marketplace. MediPendant's™ patented
two-way voice technology enables 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.
Text message alerts are also standard, and are used to inform
loved ones that the user has contacted an operator or has requested
assistance. 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. There is always the risk that the user will not
be heard by the call center operator if they are not within a short
range of the base station. For more information, go to
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.
Contact:
Medical Alarm Concepts Holding, Inc.
877-639-2929 Ext. 113
SOURCE Medical Alarm Concepts Holding, Inc.