MDHI Update - Rapid Trend towards Profitability Continues - Gearing Up for Major Fall Product Promotion with US's Second Largest Retailer
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.
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