WILMINGTON, Del., March 20, 2012 /PRNewswire/ -- Universal Capital Management, Inc. (OTC: UCMT.PK) announced today a non-binding letter of intent to purchase ProShield™ assets, a product owned by Seitz Technical Products, Inc.
The transaction is expected to be structured whereby the ProShield™ assets will be transferred to a newly created wholly owned subsidiary of Universal, whose management team will include John Seitz, the inventor of the ProShield™. The new subsidiary will serve as Universal's Medical Division. The terms of the letter of intent are broad, and the final terms of a definitive agreement, including pricing, remain subject to negotiation and execution. The transaction is expected to close within the next 90 days, but it is subject to various conditions, and Universal can make no assurances that the transaction will close.
ProShield™ is a patent-pending medical industry item developed as a protector and contaminant shield for flexible endoscopes. Hospitals worldwide incur tremendous repair and replacement costs of endoscopes due to mishandling during transport to and from the procedure and a lack of a safe, secure environment while actually performing some of the procedures. In addition, breakage can prompt the delay of scheduled procedures while cross-contamination can cause the possible spread of infectious diseases, resulting in liability from patient-to-patient and patient-to-staff interactions. ProShield™ provides a safe, contaminant-free method of transport and storage during the entire procedure from start to finish. The ProShield™ is currently being used by prestigious institutions such as Duke University Medical Center, Yale New Haven Hospital, Harvard University Medical Center, Stanford University Children's Hospital, the Mayo Clinic and many other smaller facilities.
"There is no standardized medical protocol for handling endoscopes before, during and after procedures, and we believe this acquisition will result in a needs - driven revenue and profit source for our company," says Michael Queen, CEO of Universal Capital Management. "We look forward to acquiring, managing and marketing the ProShield™ in the healthcare community, and launching it as the flagship product of a newly created medical division. We are also actively seeking other medical industry opportunities to build a sales conduit into the medical industry, which I believe could lead Universal down a whole new business path."
About Universal Capital Management
Universal Capital Management is currently pursuing a new business model whereby it serves as a direct response management and marketing company that provides management services to its clients or it's specifically owned businesses. The Company assists and enables entrepreneurs to introduce products to the consumer, wholesale or retail market.
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SOURCE Universal Capital Management, Inc.