MDHI Receives Term Sheet for Working Capital and Acquisition
Financing -- Company Hits Profitability on Recurring Revenues
KING OF PRUSSIA, Pa.,
Nov. 20, 2012 /PRNewswire/
-- Medical Alarm Concepts Holding, Inc. (OTCQB: MDHI.PK),
today announced the signing of a financing term sheet with GPE
Holdings, Inc., which does business as the Gramercy Millennium
Group. The initial $1,050,000
Series A Preferred stock investment is based on a fully diluted
post-money valuation of $6,075,000.
The lead investor will also have an option to invest an
additional $5.1 million within six
months of closing on the same terms. Use of proceeds from
these transactions will be for working capital to grow Medical
Alarm Concepts Holding's business operations and to complete two
targeted acquisitions.
"This major investment is a testament to the success we have
already achieved and an endorsement of the plans we have for the
future," said Ronnie Adams, CEO of
Medical Alarm Concepts. "These proceeds will allow us to accelerate
our reporting with the SEC, which remains one of our top
priorities, and to allow us to further enhance our domestic and
international distribution. Finally, we plan to acquire one company
in its entirety and we are planning to take a large stake in
another expected very fast growing operation. This investment is
about creating additional value for current and future MDHI common
shareholders, our management team members, and our new investment
partners."
Mr. Adams continued, "Over the past few months the company has
realized a very steep ramp in its revenue growth rate due to
acceleration in monthly monitoring services contracts. These
monthly contracts produce very high quality and high margin
recurring revenues and grow each day as new customer contracts are
added. The Company has now reached the point where contracted
monthly recurring revenues exceed the expected expenses. The
company plans to operate on a profitable basis for full-year 2013.
It is expected that acquisition revenues will enhance this
operating profitability and meaningfully add to overall shareholder
value. We are very excited to have a fund the caliber of
Gramercy Millennium Group on board with MDHI to not only invest in
our operation, but to provide valuable management insight to help
us grow, prosper and create additional shareholder value."
Additional information on the MediPendant™ medical alarm can be
viewed at www.MediPendant.com.
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.
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.