Medical Alarm Concepts Cancels 61.5 MM Warrants Significantly Strengthening Balance Sheet
KING OF PRUSSIA, Pa., Aug. 6, 2012 /PRNewswire/ -- Medical Alarm Concepts Holding, Inc. (OTCQB: MDHI.PK), today announced the cancellation of an additional approximately 61.5 million warrants to purchase common stock, the vast majority of which contained toxic reset provisions. The holders of these warrants received no compensation of any kind for these cancellations. Since the beginning of negotiations with its debt holders, the company has been able to cancel a total of approximately 162.5 million warrants and a significant portion of convertible debt, and as a result all but approximately 7.4 million warrants have been canceled over the past few months.
The Company recently launched a strategic alliance partnership with the largest warehouse club stores in the United States for sales of the Company's MediPendant™ product.
"These warrant cancellations are significant because the vast majority were 'in the money' meaning that the warrant exercise price was below the current share price. Cancellation prevents a significant amount of future shareholder dilution," commented Ronnie Adams CEO. "We are also expecting the warrant cancellations we are announcing today along with the previously announced warrant and debt cancellations to have a very positive effect on future balance sheets as many of the associated derivative liability charges are reversed as a result of cancelation. Additionally, we have recently paid down virtually all of our trade payables further strengthening our balance sheet."
Mr. Adams continued, "We very proud of the negotiations we have successfully completed. All of the approximately 7.4 million outstanding warrants have strike prices that are significantly above the current share price providing little incentive for conversion. We are very serious about presenting a strong balance sheet to our investors as we return to fully reporting status over the coming quarters."
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.
Medical Alarm Concepts Holding, Inc.
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SOURCE Medical Alarm Concepts Holding, Inc.