MDHI in Agreement with Debt Holders - Portion of Convertible Debt and Additional 14M Warrants Cancelled -- Total of 101M Warrants Cancelled this Year
KING OF PRUSSIA, Pa., May 1, 2012 /PRNewswire/ -- Medical Alarm Concepts Holding, Inc. (OTCQB: MDHI.PK), today announced it has reached an agreement with several holders of its convertible debt. Under the terms of the agreement, $56,250 of convertible debt has been cancelled, preventing a significant amount of common shareholder dilution. Additionally, the agreement calls for the cancellation of another 13,750,000 million warrants, bringing the total number of warrants cancelled this year to 101,250,000.
"We could not be more excited about the success of our negotiations with our convertible debt holders," commented Ronnie Adams, Chief Financial Officer of MDHI. "This agreement will allow us to better reflect the positive aspects of our business and our financials. In the past, we have booked a significant portion of derivative liability charges, much of which we will now be able to reverse as the balance of the convertible debt begins to drop, and these tens of millions of warrants are cancelled. We have now negotiated the cancellation of almost all of the warrants associated with our March 2009 convertible debt, and we hope to negotiate away the remaining portion over the very short term."
Mr. Adams continued, "Over the past months we have been working hard to revitalize our growth, and with the addition of our new product line, we believe we are well on our way to building the type of shareholder value we have always desired. We will strive to continue to retire our remaining debt and to cancel all potentially dilutive outstanding warrants. It is an exciting time in our corporate history and we look forward to sharing our success with our shareholders."
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.medipendant.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 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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