SOURCE: Oncologix Tech, Inc.

Oncologix Tech, Inc.

May 14, 2015 11:33 ET

Oncologix Provides Acquisition Update

LAFAYETTE, LA--(Marketwired - May 14, 2015) - Oncologix Tech Inc. (OTC PINK: OCLG), a fully reporting, diversified medical holding company with operating divisions in medical devices, healthcare services and durable medical product sales and distribution today updates its shareholders.

Current Acquisition Status Update

  • We continue to pursue our previously announced acquisition target generating $9.8 million in revenues.
  • We recently added an additional acquisition candidate to our Home Medical/Durable Medical Equipment (DME) division who is located in the same geographic market as our initial target. 
  • These combined acquisition targets will potentially increase OCLG's total annualized revenues by $19.5 million and annualized EBITDA by $3.3 million.
  • The combined acquisition targets provide an asset base adequate to capitalize the acquisitions and provides numerous operational synergies across our HME/DME platforms.

Post-Acquisition Plans

  • The reduction of OCLG convertible debt which will reduce significantly shareholder dilution.
  • Elimination of subsidiary debt which will improve operational cash flows and provides continued, internal organic growth.
  • OCLG applies to return to the OTC: Bulletin Board.
  • Evaluate a potential stock repurchase plan to strengthen the stock price and shareholder value.

OCLG's CEO Wayne Erwin stated, "We continue to work daily on all due diligence requirements and underwriting required by our senior lender to close on the acquisitions. This has been a lengthy process, but this is certainly expected considering the size and complexity of the transactions. We are confident that we will move forward on these acquisitions very soon and continue to strive towards our 2015, year-end objective of $35 million in top-line revenues with positive EBITDA exceeding $4.0 million. With the execution of these acquisitions, debt reduction and growth plans, we are confident that our stock value will rise well beyond its current enterprise value of $3.82 million (Yahoo-Finance-Key Statistics)." 

Reader Advisory
The proposed completion of the acquisitions is subject to a number of conditions, including but not limited to, Board of Directors acceptance, financial due diligence, final 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
    (318) 451-9543

    INVESTOR RELATIONS
    Synergy Business Consultants, LLC.
    (888) 259-9173