BEIJING, Sept. 13, 2011 /PRNewswire/ -- Medical Care Technologies Inc. (OTCBB: MDCE), a rapidly growing children's healthcare service provider, is pleased to announce that, through ReachOut Holdings Limited, its Hong Kong subsidiary, it has closed a $200,000 bridge loan agreement with a private investor for its first children's health and wellness center located in Dongguan, Guangdong Province, China.
The terms of the bridge loan are unsecured and bear an annual interest rate of 10% for a thirty (30) day term. Reimbursement of the loan is due in principal plus all accrued interest at the end of the thirty day period.
This financing concludes the second last stage in funding to complete the licensing process of Teddyberry™ and Company, the Company's Chinese subsidiary and to which the Company has named its first flagship children's health and wellness center. The funds will be invested in a demand deposit account and will be used to fulfill the requirements of Chinese government health authorities of proving ReachOut's strong financial backing from accredited investors.
Teddyberry™ and Company, once completed, will be a 4,000+ square foot facility that is expected to serve a community and broader metropolitan area of 10 million people, including more than 1 million children. The health center will also directly serve the two (2) neighboring municipalities of Guangzhou and Shenzhen, home to over 25 million residents. Management expects its children's health center to treat roughly a minimum of 300 patients weekly, generating an estimated $30-40 million Yuan Renminbi (RMB) in revenues, which translates to approximately $4.5 to $6 million U.S. Dollars in revenues yearly.
"This financing marks a significant milestone in the development of the Teddyberry™ project," said Ning Wu, CEO and President of Medical Care Technologies Inc. "We are very pleased with the strong investor reception for this financing, which we view as a validation of our children's healthcare development efforts."
About Medical Care Technologies Inc.
Medical Care Technologies Inc. is traded under the symbol MDCE on the OTCBB and is headquartered in Beijing, China. MDCE, through joint ventures or Chinese subsidiaries, develops a network of children's health facilities in the larger urban areas throughout China. Services are geared towards the advancing economic middle-class and upper class Chinese families. Specializing in the care of children between the ages of 3 to 16, MDCE's role is to enhance the overall well-being of the family and community and to expand its pediatric services to include preventative health and wellness education. MDCE, through its children's health facilities, will also distribute a diverse range of industry-leading pharmaceutical and nutraceutical product lines. MDCE's main mission is simple – to become a healthcare service provider leader in children's health. Information on the Company can be found at www.sec.gov and the Company's website at www.medicaretechinc.com.
Safe Harbor Statement
All statements contained in this press release, other than statements of historical fact, are forward-looking statements, including those regarding: MDCE's products, services, capabilities, performance, opportunities, development and business outlook, guidance on our future financial results and other projections or measures of our future performance; the amount and timing of the benefits expected from strategic initiatives and acquisitions or from deployment of new or updated technologies, products, services or applications; and other potential sources of additional revenue. These statements are based on our current plans and expectations and involve risks and uncertainties that could cause actual future events or results to be different than those described in or implied by such forward-looking statements. These risks and uncertainties include those relating to: lack of operating history, transitioning from a development company to an operating company, difficulties in distinguishing MDCE's products and services, ability to deploy MDCE's services and products, market acceptance of our products and services; operational difficulties relating to combining acquired companies and businesses; our ability to form and maintain mutually beneficial relationships with customers and strategic partners; changes in economic, political or regulatory conditions or other trends affecting the healthcare, Internet, information technology and healthcare and pharmaceutical industries, and our ability to attract and retain qualified personnel. Other risks and uncertainties may include, but are not limited to: lack of or delay in market acceptance and fluctuations in customer demand, dependence on a limited number of significant customers, reliance on third party vendors and strategic partners, ability to meet future capital requirements on acceptable terms, continuing uncertainty in the global economy, and compliance with federal and state regulatory requirement. Further information about these matters can be found in our Securities and Exchange Commission filings. We expressly disclaim any intent or obligation to update these forward-looking statements.
SOURCE Medical Care Technologies Inc.