SOURCE: Medifocus, Inc.

September 15, 2014 08:43 ET

Medifocus Inc. Announces Closing of Private Placement

COLUMBIA, MD and TORONTO, ON--(Marketwired - Sep 15, 2014) -  Medifocus, Inc. (OTCQX: MDFZF) (TSX VENTURE: MFS) announced today the closing of a private placement of 10,281,250 Units at a price of US$0.16 per Unit for gross proceeds of US$1,645,000. Each Unit is comprised of one common share (a Common Share) and one Series D Common Share purchase warrant (a Warrant). Each Warrant entitles the holder to purchase one additional Common Share at a price of US$0.25 for a period of 36 months following the completion of the offering. If, at any time after the date that is 12 months following the Closing Date, the daily volume weighted average trading price of the Shares on the TSX Venture Exchange or the OTCQX in the United States exceeds $0.50 (or its equivalent in U.S. dollars) for at least 20 consecutive trading days, the Company may, within 30 days of such occurrence, provide an expiry acceleration notice to the holders of Series D Warrants and, if it does so, the Series D Warrants will, unless exercised, expire on the 30th day after the acceleration notice is given.

Medifocus will pay Maxim Group a cash placement agent's fee of $148,050, equal to 9% of the gross proceeds raised in the Offering. In addition, the Company will issue placement agent warrants to purchase up to 9% of the Units sold in the Offering, at the same terms as the Units sold in the Offering (the "Placement Agent Units"), except that the issue price of the Placement Agent Units will be $0.184 per Unit. The net proceeds of the Offering will be used for the commercialization of the Prolieve® technology, the development the Adaptive Phased Array technology and for working capital.

About Medifocus, Inc.

Medifocus owns two fully developed technology platforms with comprehensive United States and international patent protection: (i) The Endo-thermotherapy Platform-a catheter-basis focused heat technology platform that utilizes natural body openings to deliver precise microwave thermotherapy to the diseased sites. The United States Food and Drugs Administration (FDA) approved Prolieve Thermodilatation System for the treatment of Benign Prostatic Hyperplasia (BPH) was developed based on the Endo-thermotherapy and is currently generating revenue; and (ii) the Adaptive Phased Array (APA) Microwave Focusing Platform, invented by the Massachusetts Institute of Technology, licensed to Medifocus directs precisely focused microwave energy at tumor center to induce shrinkage or eradication of tumors without undue harm to surrounding tissue. Medifocus' APA 1000 Breast Cancer Treatment System, developed from the APA technology platform, has received approval from the FDA and Health Canada to conduct the pivotal Phase III clinical trials. Medifocus believes that these two technology platforms can provide the design basis for the development of multiple cancer treatment systems for surface, subsurface and deep seated localized and regional cancers. Please visit www.medifocusinc.com, www.prolieve.com and http://www.facebook.com/pages/Medifocus-Inc-Company-Page/546315028715627 for more details.

Forward-Looking Statements and Information

This news release contains "forward-looking statements" and "forward-looking information", which may not be based on historical facts. Forward-looking statements and forward-looking information, include, but are not limited to, information and statements with respect the structure and the proceeds of the Offering and the expected use of the proceeds. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made. Such forward-looking statements and forward-looking information involve known and unknown risks, uncertainties and other factors that may cause the actual results events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements or forward-looking information. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements and forward-looking information. Except as required by applicable securities laws, Medifocus disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements or forward-looking information contained herein to reflect future results, events or developments.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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