LEXINGTON, Ky., Nov. 5 /PRNewswire-FirstCall/ -- Virtual Health Technologies, Inc. (OTC Bulletin Board: VHGI) announced today that it has entered into a Letter of Intent to sell all health care related assets to Wound Management Technologies, Inc. (WNDM). The deal provides for VHGI to be paid $1,000,000 in cash and debt, 4,000,000 shares of WNDM stock and a royalty agreement for continued revenues to VHGI. WNDM closed at $2.00 per share on 11/4/09 and VHGI closed at $0.27 per share on 11/4/09. VHGI intends to retain the cash and debt portion of the consideration for working capital purposes, and intends to distribute the WNDM stock to its shareholders as a dividend in 2010, subject to completion and effectiveness of a re-sale registration statement to be filed by WNDM in 2010.
"VHGI will be selling Medical Office Software (MOS) Inc., Secure eHealth LLC, and Veriscrip technology to WNDM. VHGI's technology plus WNDM's core sales and development network greatly complement each other and equals a win for both companies," stated Jim Renfro, President of VHGI. "We are confident that this will benefit our shareholders tremendously, as WNDM plans to leverage the technology to focus on the U.S. Government Healthcare Stimulus initiative. Our shareholders will realize a significant dividend in WNDM shares, yet still maintain their ownership of VHGI stock which is scheduled to receive continued royalties from the technology revenues. VHGI shareholders will continue to participate in benefits of the divisions' success, but at an accelerated timeline due to WNDM's mature technology infrastructure."
The closing of the above transaction will be conditioned among a number of things, including the execution and delivery of a mutually acceptable definitive purchase agreement and the approval of the Board of Directors of both companies as well as the shareholders of VHGI. Closing is anticipated to be on or before December 31, 2009. For VHGI Shareholder relations please call 954-357-0614.
About Virtual Health Technologies, Inc.
VHGI is a diverse company with assets and interests focusing on opportunities within the Healthcare Technology Industry and Precious Metals / Energy Resources Markets. VHGI has recently initiated steps to leverage the company's operating history and corporate resources within the Gold Mining, Precious Metals and Energy Resources Markets. Although Gold is selling at 25 year high prices and Oil & Gas continue to be trading at significant premiums, global economic events have created significant opportunities within these markets. VHGI intends to pursue these opportunities through Lease-Purchase opportunities, Acquisitions and Joint Ventures for the goal of enhanced shareholder value.
Virtual Health Technologies, Inc. cautions investors that none of the information concerning the valuations of mineral deposits or other data reported above have been verified by outside geologists or other verifiable sources.
About Wound Management Technologies, Inc.
Wound Management Technologies, Inc. (OTC Bulletin Board: WNDM), with its corporate headquarters in Fort Worth, Texas, and regional offices in Ft. Lauderdale, Florida is a rapidly growing provider of specialty medical products and advanced biotechnology solutions. The Company is leveraging its existing technology and infrastructure to develop opportunities within the International Biotechnology and Genetic Engineering fields. WNDM also believes it is positioned to develop its technology in Cancer Treatment. For more information on the Company please visit www.woundmanagementtechnologies.com or call our shareholder information department at 859-514-6982.
"Safe Harbor" Statement: Under The Private Securities Litigation Reform Act of 1995: 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 are "forward-looking statements," within the meaning of 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 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 and uncertainties detailed in the Company's SEC filings. The Company undertakes no obligation to revise any of these statements to reflect the future circumstances or the occurrence of unanticipated events.
For Further Information:
Shareholder Relations - Communications 859-514-6982
SOURCE VirtualHealth Technologies, Inc.
|SOURCE VirtualHealth Technologies, Inc.|
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