"We are using our shares to re-structure the company financially by reducing the overall debt and raising needed capital to grow our marketing programs, as well as provide us with a key new technology, the H'andy sana 211 with ECG capabilities, that will allow us to have a strategic entry into to the large and rapidly growing telemedicine market," said Steve Guillen, president & CEO of MedX.
The following key programs involve the use of common shares issued at $0.10 per share, and are all subject to TSX approval:
Shares for Debt: MedX will issue 13,447,539 common shares at $0.10 to settle debts to management, directors, and consultants. Of the 13,447,539 shares, 7,779,232 will be issued to management and directors for salary and director's fees that have not been paid, and these shares will require approval by the majority of the disinterested shareholders at the upcoming AGM, now scheduled for September 30th, 2010.
ECG Phone Transaction: MedX will issue 27,000,000 common shares at $0.10 to Medical Marketing Berlin (MMB) as per a signed Letter of Intent (LOI) for a 5 year, renewable, exclusive North American rights agreement to the H'andy sana 211 with ECG capabilities. MMB is a corporation controlled by Mr. Andy Rösch, a director of MedX. With the approval of this transaction by the shareholders, Mr. Rösch will become the largest single MedX shareholder, with 30.34% of the outstanding shares of MedX.
Private Financing: MedX will issue 20,000,000 common shares at $0.10 to raise $2,000,000. The completion of the exclusive marketing rights agreement for the ECG Phone transaction is dependent on raising $2,000,000, because $1,000,000 of the new funding is needed to further develop the software and hardware for the H'andy sana for the North American cellular systems. The remaining proceeds from the financing will be used to expand MedX's distribution network; support its marketing programs; continue development of new dental, rehabilitation and wound care products, and for working capital purposes.
Overall Value of Transactions to Shareholders |
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