MedMira Successfully Concludes Debt Restructuring Initiative
HALIFAX, Nov. 1, 2012 /CNW/ - MedMira Inc., (MedMira) (TSXV: MIR), a developer of rapid diagnostic technology and solutions, announced today that it has completed debt settlement arrangements with its debt holders and is no longer in a default position on any of its loans.
Building on a debt reduction of $11,834,592 completed in June 2012, the Company paid an additional $312,992 to eliminate a further $1,021,503 in debt. The Company has continued to improve its financial position with these new debt holder agreements that will see interest-only payments during the current fiscal year. Going forward, MedMira will be subject to no debt interest rates above three percent.
"This latest round of debt elimination, together with the previously negotiated agreements, represents a 60% reduction in the Company's liabilities associated with promissory notes, long-term debt, and convertible debentures," said Daniel Frid, CFO, MedMira Inc. "We have solidified agreements, which include reasonable interest rates, with our remaining debt holders. This ensures MedMira is no longer in default on any of its loans, increasing investor and market confidence in the Company. These are significant improvements supporting MedMira's financial health and a fundamental piece of our corporate growth strategy."
MedMira is using its improved capital position gained through this debt elimination program to advance long term product development strategies and targeted market penetration with its most advanced rapid testing solutions. Additionally, new product commercialization and technology contracting activities are on-going in order to diversify the Company's product offering and fully leverage its patented diagnostic technology platform.
"We are pleased with the support of our debt holders and shareholders alike, in enabling us to further strengthen our financial position as we move forward with our marketing and sales initiatives. We can now allocate appropriate funds for increased sales and marketing expenditures, while advancing product commercialization plans. Our improved position also enables the Company to further expand our strategic partnership program and continue relationship building with organizations such as the US Army, WHO, and the United Nations," said Hermes Chan, CEO, MedMira Inc. "With the support of key stakeholders in establishing a sustainable financial platform for MedMira's growth and profitability strategy, our targets for fiscal year 2013 are now within reach."
MedMira is a leading developer and manufacturer of flow-through rapid diagnostics and technologies. The Company's testing solutions provide hospitals, labs, clinics and individuals with reliable, rapid diagnosis for diseases such as HIV and hepatitis C in just three minutes. The company's tests are sold under the Reveal®, Multiplo™ and Miriad brands in global markets. MedMira's rapid flow-through HIV test is the only one in the world to achieve regulatory approvals in Canada, the United States, China and the European Union. MedMira's corporate offices and manufacturing facilities are located in Halifax, Nova Scotia, Canada. For more information visit MedMira's website at www.medmira.com.
This news release contains forward-looking statements, including statements relating to growth in the Company's business, earnings and profitability, and trends in demand for the Company's products, which involve risk and uncertainties and reflect the Company's current expectation regarding future events including statements regarding possible future growth and new business opportunities. Actual events could materially differ from those projected herein and depend on a number of factors including, but not limited to, changing market conditions, successful and timely completion of clinical studies, uncertainties related to the regulatory approval process, establishment of corporate alliances and other risks detailed from time to time in the company quarterly filings.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: MEDMIRA INC.For further information:
Andrea Young, Corporate Communications