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.
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