MDHI Receives Strategic Investment to Continue Strong Growth - Moves into Positive Operating Cash Flow for March 2013 Quarter
KING OF PRUSSIA, Pa., March 6, 2013 /PRNewswire/ -- Medical Alarm Concepts Holding, Inc. (OTC Pink: MDHI), today announced it has received an investment led by strategic partner, JTT-EMS LTD of Shijiazhuang, China. Under the terms of the investment, JTT-EMS purchased restricted common stock, which it plans to hold as a long-term investment. The financing, including additional investments by current shareholders, will total approximately $330,000.
"This is exciting financing for our Company that will allow us to maintain our strong growth," commented Ronnie Adams, CEO. "This strategic investment is straight common equity in the Company, which must be held for an extended period of time. There are no warrants, options, or any other enhancements. Over the past two quarters our business has turned the corner with strong growth, allowing us to reach positive cash flow. Because this growth is based on high quality recurring monthly revenues, we believe the positive operating cash flow we will report beginning in the March 2013 quarter will be sustainable moving forward."
The demand for the MediPendant® continues to grow at a rapid pace as a result of strong sales from the Company's retail partnership and growing online orders. Medical Alarm Concepts recently announced the signing of a major diversified national healthcare insurer that will offer the Company's MediPendant® product and monthly monitoring services to subscribers of selected healthcare programs. Additionally, the product will be included in the insurance carrier's dual demonstration program (Medicaid and Medicare) related contracts on which it may bid.
Use of funds from this new strategic investment will be primarily for inventory acquisition to meet growing demand. Secondary uses of funds will include completing the process of restoring the Company to fully reporting status, additional marketing programs, further reductions in trade payables, and general working capital.
The MediPendant® is a second-generation personal medical alarm and the only product in its category that allows for monitored, two-way communications and associated voice prompts directly through the pendant. Older generations of technology require the user to be in close proximity to the base station in order to speak and listen to the operator. With the MediPendant®, the customer can be anywhere within 600+ feet of their home, and in the event of an emergency, speak and listen to the EMT trained operator directly through the pendant.
Additional information on the MediPendant® can be viewed at www.MediPendant.com.
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 medical alarm 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.
Medical Alarm Concepts Holding, Inc.
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