Shares for debt and a private placement to support launch of new telemedicine product the H'andy sana 211 cell phone with integrated ECG capability
MISSISSAUGA, ON, Aug. 13 /CNW/ - MedX Health Corp., (TSXV.MDX) a global leader in drug free, non-invasive low level laser and light therapy for tissue repair and pain relief today provided additional information to its previously announced plans to re-structure the company through the use of shares to retire debt, acquire key technologies and raise cash to support the existing and newly acquired products.
"We are using our shares to re-structure the company financially by reducing the overall debt and raising needed capital to grow our marketing programs, as well as provide us with a key new technology, the H'andy sana 211 with ECG capabilities, that will allow us to have a strategic entry into to the large and rapidly growing telemedicine market," said Steve Guillen, president & CEO of MedX.
The following key programs involve the use of common shares issued at $0.10 per share, and are all subject to TSX approval:
Shares for Debt: MedX will issue 13,447,539 common shares at $0.10 to settle debts to management, directors, and consultants. Of the 13,447,539 shares, 7,779,232 will be issued to management and directors for salary and director's fees that have not been paid, and these shares will require approval by the majority of the disinterested shareholders at the upcoming AGM, now scheduled for September 30th, 2010.
ECG Phone Transaction: MedX will issue 27,000,000 common shares at $0.10 to Medical Marketing Berlin (MMB) as per a signed Letter of Intent (LOI) for a 5 year, renewable, exclusive North American rights agreement to the H'andy sana 211 with ECG capabilities. MMB is a corporation controlled by Mr. Andy Rösch, a director of MedX. With the approval of this transaction by the shareholders, Mr. Rösch will become the largest single MedX shareholder, with 30.34% of the outstanding shares of MedX.
Private Financing: MedX will issue 20,000,000 common shares at $0.10 to raise $2,000,000. The completion of the exclusive marketing rights agreement for the ECG Phone transaction is dependent on raising $2,000,000, because $1,000,000 of the new funding is needed to further develop the software and hardware for the H'andy sana for the North American cellular systems. The remaining proceeds from the financing will be used to expand MedX's distribution network; support its marketing programs; continue development of new dental, rehabilitation and wound care products, and for working capital purposes.
Overall Value of Transactions to Shareholders
Currently, MedX has 28,551,527 shares outstanding and the combined use of shares for the transactions in this press release would increase the number of shares to 88,999,067. The value provided to MedX via these shares would be to 1. rapidly improve the financial outlook by reducing overall debt, 2. increase operating funds, and 3. establish a new product line (telemedicine ECG phone) that promises to rapidly increase revenues in 2011.
The H'andy sana is already being successfully marketed in other world markets, including the Middle East. The device has been recently test marketed in Indonesia (population: approx. 5 million) and generated several million dollars in revenues in a short period of time. By comparison, there are approximately 344 million people in North America, and therefore the potential market for the H'andy sana 211 is very large. Within the North American market there is no cellular phone commercially available with all the features of the H'andy sana with ECG capabilities. Additionally, the ECG phone is complementary to MedX's wound care product line featuring PhotoBandage(TM) and WoundSmart(TM), which facilitate treatment and are used to enable remote monitoring of health and medical-related information.
More About H'andy sana 211
A comparison study demonstrated that the 1-lead ECG via the H'andy sana produced identical results with the corresponding leads of a standard 12-lead ECG record. Both ECG records were tested in parallel under clinical conditions. Following the study, Dr. Hans Lehmkuhl, chief cardiologist at the German Heart Centre in Berlin, Germany stated that he was "impressed and satisfied with the quality of the ECG recordings using the H'andy sana phone."
The H'andy sana 211 has a 2.8 inch full touch screen and full-fledged mobile phone capabilities, including a multimedia suite, internet browser, calendar, built-in camera with screen viewfinder and dedicated menus. Additionally, it offers a "health suite" of services to store data like blood pressure, cholesterol, blood glucose, a drug reminder and ECG monitoring. The user only needs to press two fingers on the phone's edges for 30 seconds for the phone to pick up an ECG reading.
The H'andy sana 211 can enable patients to monitor their health situation on their own, which facilitates their work and leisure activities.
Details of these proposed transactions will be included in MedX's management information circular to be issued September 10th, 2010.
About MedX Health Corp.
MedX is a leading North American developer and manufacturer of low level laser and light medical devices for the drug free and non-invasive treatment of tissue damage and pain in numerous medical settings including dental, rehabilitation and wound care. MedX is the world's only company focusing on developing and delivering a broad cross-section of technologies and products involved in healing using light therapy. MedX is committed to advocating for, the bringing of non-invasive, drug-free healing nature of light to people seeking relief from pain and other physical ailments.
MedX's strategy is to build upon its success in bringing relief of conditions in a non-pharmacologic manner in the rehabilitation market through key partnerships, acquisitions, strong patent protection as well as developing and commercializing advanced products in the dental and wound-care markets that will position the company to increase revenue. In addition, MedX plans to accelerate the development of a new product aimed at the rapidly-growing wound care market: its "Photobandage(TM)", a bandage technology that allows a wound to be bathed in light, designed to enhance the healing process. The Company intends to license this new technology to one or more major wound care companies for further development of marketing and sales.
Brand products are US FDA approved, Health Canada cleared, and CE Marked and are produced in an ISO 9001 and 13485 certified manufacturing and testing facility. For a complete profile of MedX Health Corp. and its products visit www.medxhealth.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward-looking information may include statements regarding the Company's future plans, objectives, performance, growth, profits, operating expenses or its underlying assumptions. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of MedX to be materially different from those expressed or implied by such forward-looking information, including uncertainty of successful development of new products, uncertainty of successful manufacturing or marketing of products, uncertainty of commercial acceptance of products, uncertainty concerning governmental regulation, dependency on key employees and relationships, rapid technological changes, foreign currency fluctuations. MedX does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
SOURCE MedX Health Corp.
For further information: For further information: Investors: Steve Guillen, President and Chief Executive Officer, MedX Health Corp., Phone: (905) 826-0766, firstname.lastname@example.org