FORT WORTH, Texas, Jan. 11 /PRNewswire-FirstCall/ -- Wound Management Technologies, Inc. (OTC Bulletin Board: WNDM) announced today that they have reached a mutual understanding and verbal agreement in principle to acquire secure data and messaging provider, Secure eHealth, LLC, and certain other technology assets from VirtualHealth Technologies, Inc. (OTC Bulletin Board: VHGI). The parties have completed the due diligence process, agreed to the price and terms and are currently drafting and negotiating definitive documentation on this transaction and expect to close the transaction within the next two weeks. In addition to acquiring Secure eHealth, Wound Management will also be acquiring from VHGI all of the intellectual property assets of the real-time prescription drug monitoring company Veriscrip and the Private Access Convertible Note and Agreements. Wound Care Innovations, a WNDM subsidiary, currently licenses the Cifra solution from Secure eHealth and will initially use this highly secure messaging system, document courier and database to share and compile information for ongoing evidence based case studies on its patented collagen CellerateRx® products for treating diabetic wounds.
"Following a series of extensive discussions, the management of both companies agreed that with Wound Management's focus being primarily on product development and with its ongoing involvement in clinical trials for the diabetic community, Secure eHealth was an obvious fit for executing its strategy going forward," stated Scott Haire, CEO of Wound Management Technologies. "Given the fact that the key component in Veriscrip is the security platform it only made sense that Veriscrip's assets be transferred as well in the transaction. Our next benchmark is to become profitable in 2010 and bring earnings to the bottom line as quickly as possible."
As currently negotiated, the terms of acquisition will include $100,000 in cash and a note for $400,000 also included is Wound Management's purchasing of VirtualHealth's convertible note and agreements with Private Access, Inc., the Irvine based innovator in privacy-enhanced search technology and licensee of Secure eHealth's System Tray Notifier. However, VHGI will retain its near 5% ownership interest in Private Access which was received under the original investment into Private Access. A royalty agreement will also be established for VHGI relative to any business acquired by Secure eHealth using the Veriscrip real-time prescription drug monitoring technology. Specific details will be set forth in the definitive transaction documents. Closing of the transaction is dependent on the successful negotiation and execution of the definitive transaction documents.
For Wound Management Technologies Shareholder Information please call 954-357-0614 or go to http://www.woundmanagementtechnologies.com.
About Wound Management Technologies, Inc.
Wound Management Technologies, Inc. (OTC Bulletin Board: WNDM), with its corporate headquarters in Fort Worth, Texas, and regional offices in Ft. Lauderdale, Florida is a rapidly growing provider of specialty medical products and advanced biotechnology solutions. The Company is following the lead of NASDAQ Biotech Stock INDEX leaders such as Celgene (CELG) http://www.celgene.com, Geron (GERN) http://www.geron.com, and Human Genome Sciences (HGSI) http://www.hgsi.com by working to leverage its existing technology and infrastructure to develop opportunities within the International Biotechnology and Genetic Engineering fields. WNDM also has an interest in Cancer Treatment. For more information on the Company please visit http://www.woundmanagementtechnologies.com.
"Safe Harbor" Statement: Under The Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development are "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. This document may contain forward-looking statements concerning the Company's operations, current and future performance and financial condition. These items involve risks and uncertainties such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, the ability to consummate and integrate acquisitions, and other risks and uncertainties detailed in the Company's SEC filings. The Company undertakes no obligation to revise any of these statements to reflect the future circumstances or the occurrence of unanticipated events.
For Further Information: Shareholder Relations-Communications 954-357-0614
SOURCE Wound Management Technologies, Inc.