LAS VEGAS, March 27, 2017 /PRNewswire/ --
HemCare Health Services Inc. (OTC: HCRE), "the Company" is pleased to announce the retirement of more than 71 million shares of its common stock and the retirement of substantially, all of its debt.
Management reached a settlement agreement to have 71,140,000 shares of its common stock returned for cancellation and rescission. The settlement agreement was with 7 individuals and companies, who were in possession of the Company's common shares. These individuals and entities received these shares from the nominees of Ultroid Marketing Development Corp, following its May 19, 2015 agreement to licensed perpetual rights and acquisition of Ultroid Marketing Development Corp's products and the trade name 'Ultroid System' to the Company.
Under the terms of the Agreement, the Company will stop its legal action and refrain from taking other such actions that may harm these shareholders and entities and provide a final release from liability.
Seeking Additional Share Retirement
The Company still believes there to be more than 28 million common shares outstanding that in the opinion of management, have been transferred and/or acquired without proper consideration and under questionable circumstances relating to this transaction with Ultroid and its nominees. The Company has placed a "Stop Transfer" on these shares with its Transfer Agent and will continue to pursue all remedies for the legal order, to cancel these shares and to recover costs and damages in doing so.
In addition to the 28 million shares the Company has placed a stop transfer on, it is also seeking to recover and retire an additional 58 million shares of its Common stock. If successful, this would represent a total of 158 million shares retired or approximately 58% of the company's previously outstanding shares. Although there can be no assurance in our ability to successfully retire these shares, management is committed to working to this end. Management expects to announce more details on this in the near future.
Retires Debt - Strengthens Balance Sheet
In the 1st quarter of 2017, management retired more than $280,000 in debt or essentially retiring all but $50,000 of its debt. As part of the settlement agreements, more than $30,000 of principal and interest related to an alleged Convertible Promissory Note signed by the Company's previous Chief Executive Officer was eliminated. The forgiveness and cancellation of this note removes all convertible debt and protects the shareholders from increased dilution, by having removed all forms of convertible instruments currently outstanding.
During the period the Company also reached an agreement with its 9% Secured Promissory Note holder, to retire $250,000 of outstanding principal & interest by way of the issuance of 12,500,000 restricted common shares of the Company. As part of the agreement the note maturity date was extended to January 26, 2018 for the approximately $50,000 balance.
About HemCare Health Services Inc
HemCare Health Services ("HHS") is a Health Information Exchange company. HHS is creating a single unified platform enabling the ability to request and retrieve medical information & records while meeting all of today's Security & Compliance demands for HIPAA, PIPEDA and PHIPA. Learn more by visiting http://www.HemCareHealth.com
Disclaimer: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. These forward-looking statements are based largely on the expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the control of management. Therefore, actual results could differ materially from the forward-looking statements contained in this press release. Additional information respecting the factors that could materially affect the Company and its operations are contained in its annual report on Form 10K and Form 10-Q as filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statement.
HemCare Health Services Inc.
SOURCE HemCare Health Services Inc.