SAN DIEGO, Dec. 4 /PRNewswire-FirstCall/ -- Favrille, Inc. (OTC Bulletin Board: FVRL) and MyMedicalRecords.com, Inc. ("MMR"), a health information company focused on secure Web-based storage of electronic Personal Health Records (PHRs), announced today that two significant conditions required for the closing of their definitive merger agreement have been met.
"We are pleased to announce that Favrille creditors holding more than 85% of the dollar value of all known creditor claims have entered into settlement agreements related to their claims," said John P. Longenecker, President and CEO of Favrille. "We believe this level of participation should allow us to achieve our objective of offering our creditors and stockholders the best available outcome by completing the merger with MMR."
"We are pleased to announce that the merger won overwhelming support from MMR stockholders, with more than 90% of outstanding shares voting in favor of the merger." said Robert H. Lorsch, Chairman and CEO of MyMedicalRecords.com. "The audit of our financial statements is currently in process and we anticipate closing the transaction by year-end."
The merger is subject to customary closing conditions, Favrille meeting certain minimum cash requirements as of closing and the completion of audited financial statements for MMR which will be available immediately after closing.
MMR offers a secure, easy-to-use, consumer-centric PHR that is available direct to consumers on a free trial basis through its website http://www.mymedicalrecords.com. The product is also used by employers as an employee benefit and labor unions and affinity groups as a value added member benefit. Additionally, the MyMedicalRecords.com PHR is marketed as a private-label product to healthcare professionals and hospitals.
Current MMR customers include AFL-CIO unions, Alexian Brothers Hospital Network, Coverdell, MedicAlert, Midwest Research Institute, Qvisory, and XN Financial. MMR is also a Google Health Integrated Service Provider. The company has license agreements to sell its products in several other countries around the world.
After the merger closes, MMR plans a series of product development, marketing and technology initiatives, including the launch of its MMR physician product, MMR Pro. The MMR professional document management system is a low-cost alternative solution to an Electronic Medical Record ("EMR") system and is aimed at helping the approximately 90% of physicians in small practice groups still using paper records get both back-file and day forward electronic documentation. Where existing EMR systems can cost as much as $40,000 per physician just to set-up, MMR Pro is expected to be offered at a starting cost of $500 per month.
MMR further leverages its patent-pending technologies through the brand extension MyEsafeDepositBox.com. Based on the same architecture as the MyMedicalRecords.com PHR, the MyEsafeDepositBox.com service is targeted to consumers who recognize the need to keep all their important documents in addition to personal medical records securely online so they can access them anytime from anywhere, especially in emergencies or when traveling.
The company plans also to focus on promoting initiatives to U.S. Government Officials requesting that Health IT legislation involving Personal Health Records incorporates provisions that give consumers the ability to add their existing paper medical records to any electronic PHR. This will enable individuals to have immediate access to their personal health information in one convenient location regardless of the system being used by their medical providers.
"There is growing evidence to suggest that giving health consumers greater access to their records can be instrumental in significantly reducing healthcare costs," Lorsch noted. "In fact, WellPoint Health Networks reported this year that the cost of a typical $1,200 Emergency Room visit is cut in half with the availability of pre-populated health records."
Additional Information about the Merger and Where to Find It
On November 13, 2008, Favrille filed a Current Report on Form 8-K with the SEC that includes copies of the definitive merger agreement and other related agreements as exhibits. A copy of the Form 8-K, as well as other filings containing information about Favrille, is available without charge, at Favrille's website (http://www.favrille.com) and the SEC's website (http://www.sec.gov).
About MyMedicalRecords.com, Inc.
MyMedicalRecords.com (MMR) provides secure and easy-to-use Web-based Personal Health Records and Electronic Safe Deposit Box storage solutions to consumers, healthcare providers, employers, insurance companies and professional organizations. MMR is 100% user-controlled and allows individuals to access their personal medical records and other important documents such as wills, insurance policies and financial records anytime from anywhere using an Internet-connected computer. Based on proprietary patent-pending technologies, MMR enables documents, images and voicemail messages to be transmitted in and out of the system using a variety of methods, including fax, file upload and e-mail. For more information, visit http://www.mymedicalrecords.com.
Statements in this press release that are not strictly historical in nature constitute "forward-looking statements." Such statements include, but are not limited to, statements regarding the proposed transaction, including the timing for closing, the completion of MMR's audited financial statements, the benefits to Favrille's stakeholders, the benefits provided by MMR's products, including cost reductions, improved care and reduced medical errors, proposed reforms to the U.S. healthcare system, MMR's initiatives and the prices for its products following the merger and Favrille's ability to settle creditor claims. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Favrille's actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors include, but are not limited to, the risk that Favrille and MMR may not be able to complete the proposed transaction in a timely manner or at all, the risk MMR's products are not adopted or viewed favorably by the healthcare community, risks related to the current uncertainty and instability in financial and lending markets, risks related to the listing status of Favrille's common stock on the OTC Bulletin Boards, risks relating to Favrille's ability to negotiate settlements with its creditors, risks relating to the ability of Favrille and MMR to satisfy conditions to closing the proposed merger transaction and additional risks discussed in Favrille's filings with the Securities and Exchange Commission. The combined company will also be subject to a number of risks and uncertainties, including risks relating to the need to have access to additional capital to finance the business until it can generate sufficient cash flow from operations and risks relating to the adoption of personal health care records and the development of a viable revenue generating business model. All forward-looking statements are qualified in their entirety by this cautionary statement. Favrille and MMR are providing this information as of the date of this release and, except as required by law, do not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.
|SOURCE Favrille, Inc.|
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