|By PR Newswire||
|November 20, 2012 07:35 AM EST||
KING OF PRUSSIA, Pa., Nov. 20, 2012 /PRNewswire/ -- Medical Alarm Concepts Holding, Inc. (OTCQB: MDHI.PK), today announced the signing of a financing term sheet with GPE Holdings, Inc., which does business as the Gramercy Millennium Group. The initial $1,050,000 Series A Preferred stock investment is based on a fully diluted post-money valuation of $6,075,000. The lead investor will also have an option to invest an additional $5.1 million within six months of closing on the same terms. Use of proceeds from these transactions will be for working capital to grow Medical Alarm Concepts Holding's business operations and to complete two targeted acquisitions.
"This major investment is a testament to the success we have already achieved and an endorsement of the plans we have for the future," said Ronnie Adams, CEO of Medical Alarm Concepts. "These proceeds will allow us to accelerate our reporting with the SEC, which remains one of our top priorities, and to allow us to further enhance our domestic and international distribution. Finally, we plan to acquire one company in its entirety and we are planning to take a large stake in another expected very fast growing operation. This investment is about creating additional value for current and future MDHI common shareholders, our management team members, and our new investment partners."
Mr. Adams continued, "Over the past few months the company has realized a very steep ramp in its revenue growth rate due to acceleration in monthly monitoring services contracts. These monthly contracts produce very high quality and high margin recurring revenues and grow each day as new customer contracts are added. The Company has now reached the point where contracted monthly recurring revenues exceed the expected expenses. The company plans to operate on a profitable basis for full-year 2013. It is expected that acquisition revenues will enhance this operating profitability and meaningfully add to overall shareholder value. We are very excited to have a fund the caliber of Gramercy Millennium Group on board with MDHI to not only invest in our operation, but to provide valuable management insight to help us grow, prosper and create additional shareholder value."
Additional information on the MediPendant™ medical alarm can be viewed at www.MediPendant.com.
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.
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.
877-639-2929 Ext. 113
SOURCE Medical Alarm Concepts Holding, Inc.