Medical Alarm to Begin Fulfillment of MediPendant™ Against Largest Purchase Order - Announces Additional Warrant Cancellations
Jan 31, 2012, 09:00 ET
KING OF PRUSSIA, Pa., Jan. 31, 2012 /PRNewswire/ -- Medical Alarm Concepts Holding, Inc. (OTCQB: MDHI.PK), today announces that it has received its first subsequent order as part of a large ongoing commitment the Company previously announced on November 21, 2011. This purchase order, which will be delivered in monthly installments throughout 2012, represents the company's single largest order to date.
"In November 2011, we announced a significant purchase order from one of our largest distribution partners," commented Ronald Adams, President of Medical Alarm Concepts. "We are very excited to announce that we have started to receive orders under this large contract, and that we are working with our manufacturing partner to significantly expand production of our patented MediPendant™ medical alarm device. We anticipate our profit from this contract will represent a substantial portion of our annual overhead. With our new television campaign launching this past weekend, and our other marketing programs in the works, we believe we are well-positioned to take market share in this robust and expanding space."
Mr. Adams continued, "Both end user customers and distributors are responding to our marketing message. With our patented, speak and listen through the pendant technology, we offer a superior medical alarm technology at a price that is highly competitive. We are expanding our distribution not only through the orders we are announcing today, but also via our partnerships with other vendors including Albertsons, Harrington Multimedia, and other big box and wholesale clubs. In addition, we now also have the financing arrangements in place to support our working capital needs in order to grow our business and expand shareholder value."
Medical Alarm Concepts recently announced a proposed merger with Carrollton, Texas-based FirstFitness Nutrition Inc., a leading provider of weight loss, wellness, and energy and fitness nutritional products. The combined operation is expected to produce over $12 million in revenues this year, and to yield both positive earnings and cash flow. Since the announcement of the proposed merger, revenues at FirstFitness have been accelerating due to increased interest in the weight loss category and enhancements to its marketing efforts. The companies have set February 28, 2012 as the proposed closing date for the merger.
In other news, the Company has been successful in negotiating the cancellation of an additional 10.5 million in money warrants, which is in addition to the cancellation of the 15.5 million in money warrants announced last week. The Company is expecting additional warrant cancellations and convertible debt cancellations over the next several weeks. These cancellations are part of an ongoing program to reduce shareholder dilution and to meaningfully improve the Company's balance sheet and future income statement performance.
About Medical Alarm Concepts
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, please visit our website at www.medicalalarmconcepts.com.
About FirstFitness Nutrition
FirstFitness Nutrition, headquartered in Carrollton, Texas is a leading provider of wellness, weight loss, and energy and fitness products. The Company has been in business for more than 20 years. Chairman of FirstFitness Nutrition, Lee Causey, is a pioneer in the weight loss and sports nutrition industries. In the early 1960s, he began to lay the groundwork for the first ever "diet shake," a product, which today is manufactured by hundreds of companies, and responsible for generating billions of dollars in sales worldwide.
Before long, Lee became known as a wellness expert to many celebrities, athletes and notable leaders. In the 70s, he broke new ground with the creation of his first nutritional company "Slender Now," which was touted by the Wall Street Journal as the fastest growing privately held company in history. He has since created more than 300 nutritional and weight loss products and, along with Nigel Branson, founded FirstFitness Nutrition in 1989. The Company distributes its products via a dynamic sales channel consisting of more than 5,000 dedicated men and women who market the products to consumers in all fifty U.S. states. For more information on FirstFitness Nutrition please visit the Company's website at www.firstfitness.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 letter of intent outlined in this press release is nonbinding on either party, and while both parties intend for the merger to be consummated, there is no assurance that a definitive agreement will take place. 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.
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