Receives $1.95 Million in Net Cash Proceeds from Private Placement of Restricted Stock and Warrants and Converts $2.1 Million of Debt into Equity
CEDAR KNOLLS, N.J., Jan. 29 /PRNewswire-FirstCall/ -- MedeFile International, Inc. (OTC Bulletin Board: MDFI), a company specializing in portable electronic medical records management solutions, today announced that the Company received total net proceeds of $1.95 million from three separate private placement transactions.
Specifically, transactions closed on November 16, 2007 and January 22, 2008 yielded $1.79 million in gross cash proceeds from the private placement of 11.9 million restricted shares of common stock and warrants to purchase an aggregate of 7.2 million restricted shares of common stock. Detailed terms and conditions of these transactions may be found in a related Form 8-K filed with the U.S. Securities & Exchange Commission (SEC) on January 24, 2008 and available at http://www.sec.gov or on the Company's web site, found at http://www.medefile.com/corp/secfilings.asp. On January 28, 2008, the Company received an additional $160,000 in gross proceeds from the private placement of 1.1 million restricted shares of common stock and warrants to purchase an aggregate of 640 thousand restricted shares of common stock.
In addition, MedeFile reported that the Company's largest stockholder and primary creditor has converted $2.1 million in debt into 14 million restricted shares of MedeFile's common stock, thereby reducing the Company's indebtedness to the stockholder from approximately $3.04 million to approximately $940,000. In connection with the conversion, the stockholder also received warrants to purchase an aggregate of 8.4 million restricted shares of the Company's common stock. Further details related to this debt conversion may be found in the Form 8-K filed with the SEC on January 24, 2008.
Milton Hauser, Chairman and CEO of MedeFile, stated, "Collectively, these debt conversion and equity transactions have served to materially strengthen our balance sheet, while providing us with additional working capital to help fund our strategic organic growth. This financing and debt conversion will enable management to further its current sales and marketing initiatives aimed at increasing the number of subscribers to the MedeFile system. We look forward to keeping our shareholders up-to-date on our achievements now and in the future."
The securities offered by MedeFile have not been registered under the Securities Act of 1922 or any state securities laws. Therefore, such securities may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and any applicable state securities laws. This press release does not constitute an offer to purchase any securities of a solicitation of an offer to sell any securities.
About MedeFile International, Inc.
MedeFile has developed a proprietary system for gathering and digitizing medical records so that individuals can have access to a comprehensive set of their medical records. MedeFile's primary product is the MedeFile system, a highly secure system for gathering and maintaining medical records. The MedeFile system is designed to gather all of its members' actual medical records and create a single resource that is accessible 24 hours a day, seven days a week.
Representing an advanced, yet easy-to-use, approach to portable, electronic medical records management, MedeFile combines state-of-the-art technology and the Internet to make medical data instantly accessible to each MedeFile subscriber and his or her authorized healthcare providers from anywhere in the world. In addition to accessing one's medical records through MedeFile's secure Internet portal found at http://www.MedeFile.com, members can carry their entire medical history and emergency information wherever they go on a unique device called a MedeDrive -- a proprietary USB drive designed to be carried on a keychain. The MedeDrive plugs into any USB port of a Windows- based PC; and because MedeDrive automatically loads its own viewer, users do not require any special programs or software to view data. MedeMobile provides on-the-go subscribers with the ability to enjoy even greater flexibility and access to their personal health information wherever and whenever they need it.
For more information about MedeFile and the MedeFile system, visit http://www.medefile.com.
Safe Harbor Statement Under the Private Securities Litigation Act of 1995
With the exception of historical information, the matters discussed in
this press release are forward-looking statements that involve a number of
risks and uncertainties. The actual future results of MedeFile could differ
significantly from those statements. Factors that could cause actual
results to differ materially include risks and uncertainties such as the
inability to respond to the evolving technological landscape, inability to
finance the Company's operations or expansion, inability to hire and retain
qualified personnel, competitive pressure, changes in the general economic
climate, including rising interest rates, and unanticipated events such as
terrorist activities. In some cases, you can identify forward-looking
statements by terminology such as "may," "will," "should," "expect,"
"plan," "anticipate," "believe," "estimate," "predict," "potential" or
"continue," the negative of such terms, or other comparable terminology.
These statements are only predictions. Although we believe that the
expectations reflected in the forward-looking statements are reasonable,
and such statements should not be regarded as a representation by the
Company, or any other person, that such forward-looking statements will be
achieved. We undertake no duty to update any of the forward-looking
statements, whether as a result of new information, future events or
otherwise. In light of the foregoing, readers are cautioned not to place
undue reliance on such forward-looking statements. For further risk factors
associated with our Company, review our SEC filings.
FOR MORE MEDEFILE INFORMATION, PLEASE CONTACT:
Elite Financial Communications Group, LLC/Elite Media Group
Dodi Handy, President and CEO, or Daniel Conway, Chief Strategist
407-585-1080 or via email at firstname.lastname@example.org
|SOURCE MedeFile International, Inc.|
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