MedMira Eliminates $11.8 Million in Debt through Debt Holder Settlement Plan
HALIFAX, June 13, 2012 /CNW/ - MedMira Inc., (MedMira) (TSXV: MIR), a developer of rapid diagnostic technology and solutions, announced today that it has been successful in reducing the Company's debt position by CAD$11,834,592, representing a nearly 60% reduction in the Company's current liabilities associated with promissory notes, long-term debt, and convertible debentures. To achieve this strengthened financial position, MedMira has paid CAD$1,806,481, through various compromise and negotiated debt holder settlements. The net impact of this gain is $10,028,111 or $0.026 per share.
"The Company's interest expense associated with these debts will be reduced by more than half a million dollars per quarter. MedMira is committed to strengthening its balance sheet and the impact of these debt settlements will be reflected in the upcoming annual financial statements for fiscal year 2012," said Daniel Frid, CFO, MedMira Inc. "Using our debt settlement plan, we began negotiations with several of the Company's largest debt holders nearly one year ago and we are pleased to see the successful implementation of the plan thus far. Additional debt reduction and financial stabilization initiatives are ongoing, and a key piece of MedMira's broader strategy for long term growth and profitability."
MedMira's debt reduction initiatives enable the resources and support required for global marketing and business development initiatives aimed at fully exploiting the true value of the MedMira's patented technology platform and advanced rapid diagnostics.
"We are confident that this significant reduction in debt together with a recent investment from Andurja Beteiligungen AG, positions MedMira to deliver on business development targets and achieve growth and increased revenues in the near future," said Hermes Chan, CEO, MedMira Inc. "Key elements of our strategic business plan, including increased financial stability, a global strategic partner network, and a strong technology platform validated by world class organizations such as the Canadian Forces and U.S. Army, are now aligned."
MedMira is a leading developer and manufacturer of flow-through rapid diagnostics and technologies. The Company's tests 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.
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Andrea Young, Corporate Communications