LOS ANGELES, CA--(Marketwired - October 22, 2013) - MediSwipe Inc. (OTCQB: MWIP) (www.MediSwipe.com), the leader in Compassionate Care Technology Solutions for the medicinal marijuana industry, reported today that its Board of Directors has made a decision to consolidate its current authorized and outstanding common shares and reverse split the Company's shares on the basis of ten old shares for one new share subject to approval by FINRA as outlined in the amended Pre 14C information statement planned to be filed today. The company's proposed plan and corporate structure after the consolidation will leave the Company with two-hundred fifty million (250,000,000) common shares authorized and less than forty-five (45) million shares outstanding.
After carefully considering MediSwipe's growth and strategic objectives, the Company believes that a share consolidation could provide significant benefits to MediSwipe and its shareholders. This proposed change in corporate structure may open the door to a large base of potential new investors and provide the necessary pricing and capital structure to attract potential acquisitions, institutional sponsorship and may allow for an eventual listing on a higher exchange. This action will have no impact on the company's value or future cash flow.
While there are no guarantees, there may be important benefits that the proposed consolidation could provide, including:
-- A higher post consolidation price per share could make MediSwipe eligible for investments by a significant base of potential new investors that who otherwise could not invest below a minimum per share value.
-- A larger investor pool may also result in a possible increase in trading volume.
-- A higher post consolidation price per share could also improve the company's ability to pursue a dual listing on a major exchange and finance in the market, if warranted in the future.
-- An increase in the share price in absolute dollar terms may improve the market perception of MediSwipe's stock.
-- The proposed consolidation could also align the company's number of outstanding shares relative to its peers.
"I would like to first begin by thanking our shareholders for your patience and support during this chapter of the company's history. While many challenges remain, I am confident that we are close to turning this company around and am confident this action will initiate shareholder value back to our stock over the long term. I will continue to devote myself to the task of providing this company with the tools needed for its success.
The major area of importance for us is the proper capitalization of MediSwipe and its subsidiaries. With the recent spin-off of 800 Commerce, issuance of the dividend and our continued increase in sales of our beverage division and growing presence in Colorado as part of the new recreational market, I am confident that we are on the right path to bringing this company to the level it deserves.
We have attempted to bring shareholder value in every way possible within our sector, yet our present capitalization table simply will not allow us to do so. By completing this reverse stock split, we expect to gain broader access to the institutional investment community and believe this strengthened position will provide the availability of common stock necessary to fund future transactions which could enable us to become a more diversified biotechnology company," stated B. Michael Friedman, CEO of MediSwipe.
About MediSwipe Inc.
MediSwipe Inc. (www.MediSwipe.com) provides innovative patient solutions for electronically processing transactions within the healthcare industry. MediSwipe provides terminal-based service packages and integrated Web Portal add-ons for physicians, clinics, hospitals and medical dispensaries that include: digital patient records, Electronic Referrals, Credit/Debit Card merchant services, and wellness products including beverages Chillo and C+Swiss.
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of MediSwipe Inc. to be materially different from the statements made herein.
"Safe Harbor" Statement: The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development and any other statements not constituting historical facts are "forward-looking statements," within the meaning of and subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. This document may contain forward-looking statements concerning the Company's operations, current and future performance and financial condition. These items involve risks, contingencies and uncertainties such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, the ability to consummate and integrate acquisitions, and other risks, contingencies and uncertainties detailed in the Company's SEC filings, which could cause the company's actual operating results, performance or business plans or prospects to differ materially from those expressed in, or implied by these statements. The Company undertakes no obligation to revise any of these statements to reflect the future circumstances or the occurrence of unanticipated events.