KING OF PRUSSIA, PA--(Marketwired - Feb 20, 2014) - Medical Alarm Concepts Holding, Inc. (OTC Pink: MDHI), today announced the filing of a Notification of Corporate Action with the Financial Industry Regulatory Authority (FINRA) to effect a reverse stock split at the rate of one share for each eight hundred shares currently outstanding and authorized. Additionally, the Company is providing an update to investors relative to events at the Company.
Ronnie Adams, CEO of Medical Alarm Concepts Commented, "Over the past 24 months we have made significant progress. We now sell our patented medical alarm product through one of the largest retailers in the world and our product reviews on this retailer's website are exceptional. We now have a strong strategic partner in China, a growing European presence, and a restructured balance sheet virtually free of debt except for normal trade payables and patent related debt, which is offset by a significant asset. We have based our business model on recurring monthly revenues, which produce strong gross margins allowing us to become operationally cash flow positive, a position that strengthens virtually every day. Even though we have accomplished much and our future growth prospects are very solid, our Board of Directors believes our investors will not realize the full value of these accomplishments until the Company is fully reporting and the stock moves away from the 'penny stock' category. We are working tirelessly with our auditors and accountants to return the Company to fully reporting status. Since the process began last May we have completed full audits for 2011 and 2012, we have filed Form 10Ks for fiscal years ending 2011 and 2012 and the three Form 10Qs for 2012. While completing the filings for 2013 is taking longer than expected, significant progress is being made. I am confident that we will soon once again be fully reporting with the SEC and that investors will have full transparency into the significant revenue growth, cost reductions, and balance sheet restructuring that has occurred. We recently filed to effect a reverse stock split as we believe investors, suppliers, distributors, and acquisition targets will take the Company much more seriously if the stock does not trade within the 'penny stock' category. A company with robust technology such as ours, quality suppliers, quality distributors, a growing revenue stream that produces strong margins, and future prospects as bright as ours, simply does not belong within the 'penny stock' category. Thus, we are implementing this reverse stock split and plan to further push to complete the process of returning the Company to fully reporting status in order to fully unlock the true value of our stock for all investors and other stakeholders."
Prior to the stock split there are approximately 4.14 billion shares outstanding, placing the Company's total market capitalization at approximately $2.6 million. As a result of the reverse stock split, there will be 5,518,541 common shares outstanding. While the authorized number of shares will stand at 20 million after the reverse split is implemented, at this time there are no plans to issue shares in excess of the 5,518,541 with the additional shares being reserved for strategic acquisitions, employee retention and recruitment, or for issuances, such as for inventory acquisition, to ensure the Company's current robust growth rate can be maintained.
The Board of Directors believes a reverse stock split will increase investor interest in the Company, improve the Company's ability to form additional distribution and other business partnerships, improve the perception of the common stock as an investment security, decrease stock price volatility, and increase investor attention to our recent debt elimination and balance sheet restructuring efforts. Additional information concerning the details of the stock split can be reviewed in the Company's SEC filing on Form 8-K.
About Medical Alarm Concepts Holding, Inc.
Medical Alarm Concepts Holdings, Inc., which trades on the over the counter market under the stock symbol "MDHI", is the manufacturer of the MediPendant® personal medical alarm. The MediPendant® is a patented two-way voice technology enabling 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. 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. For more information on the MediPendant®, please visit 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.