SOURCE: Oncologix Tech, Inc

Oncologix Tech, Inc

March 16, 2015 08:45 ET

OCLG Provides Update on Its Proposed Acquisition of a Leading Medical Products Company

LAFAYETTE, LA--(Marketwired - Mar 16, 2015) - Oncologix Tech Inc. (OTC PINK: OCLG), a fully reporting, diversified medical holding company with operating units in medical devices, medical products and healthcare services, announces update on proposed acquisition. 

OCLG previously announced that, pursuant to an executed Letter of Intent, the company proposed acquisition of a leading Home Medical/Durable Medical and both parties have agreed to use their best efforts to complete the respective asset verifications, financial due diligence and negotiate in good faith to enter into a definitive Stock Purchase Agreement.

Wayne Erwin, the CEO of OCLG stated, "We continue to make significant progress with the closing of the acquisition. We were required to adjust the funding strategy to avoid excessive shareholder dilution, complete the acquired entity's financial audit and, lastly, we are now in the final underwriting and due diligence process required by our new lending partner." 

The company has two (2) primary objectives when reviewing strategic acquisitions in medical products and distribution. The acquisitions must:

1. Accelerate our company's growth with a core platform for medical product sales and distribution across the U.S.
2. Exhibit a solid track record of revenue growth, healthy earnings and free cash flow.

Erwin continued, "This acquisition certainly meets our criteria and post-closing, and would position OCLG with a total of $15.6 mm in annualized revenues, positive earnings and operational cash flows. We also are in the initial phases of our due diligence with an additional Home Medical company that has $10.2 million in annual revenues. The acquisitions along with our operating subsidiaries in health services and medical devices will support our strategic objective to achieve $35 million in annual revenues and $3.5 million of positive EBITA in FY 2015."

OCLG will issue a further news release as soon as additional details are available regarding the proposed acquisition.

Reader Advisory
The proposed completion of the acquisition is subject to a number of conditions, including but not limited to, Board of Directors acceptance, financial due diligence, underwriting for capital lending and the company cannot close any transaction until the required approvals are obtained. There can be no assurance that this acquisition will be completed as proposed or at all.

This press release may contain forward-looking statements, made in reliance upon Section 21D of the Exchange Act of 1934, which involve known and unknown risks, uncertainties or other factors that could cause actual results to differ materially from the results, performance, or expectations implied by these forward-looking statements. Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is 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. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to timing and completion of the due diligence relating to the Acquisition, the entering into of the Formal Agreement and the completion of the conditions precedent to the Acquisition. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in the United States and globally; industry conditions, including favorable results in the medical products competitive bid process, governmental regulation of medical reimbursements; unanticipated operating events or performance which can reduce product sales and distribution; failure to obtain industry partner and other third party consents and approvals, and the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; incorrect assessments of the value of acquisition; failure to realize the anticipated benefits of acquisitions and dispositions; and the other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

About Oncologix Tech
Oncologix is a diversified medical holding company that operates and manufactures Class II medical device products, delivers Personal Health Care Services, and sells and distributes Durable and Home Medical Equipment. For its clients, Oncologix provides FDA approved medical devices, state licensed healthcare services, and medical products and technologies. For its shareholders, Oncologix operates profitable divisions that build, maintain and nourish all shareholder value. The Company's corporate mission is to be the best small cap medical holding company in North America.

Contact Information

  • CONTACT INFORMATION
    Wayne Erwin
    Chairman and CEO

    INVESTOR RELATIONS
    Synergy Business Consultants, LLC.
    (727) 491-3911