KING OF PRUSSIA, Pa., Nov. 20, 2012 /PRNewswire/ -- Medical Alarm Concepts Holding, Inc. (OTCQB: MDHI.PK), today announced the signing of a financing term sheet with GPE Holdings, Inc., which does business as the Gramercy Millennium Group. The initial $1,050,000 Series A Preferred stock investment is based on a fully diluted post-money valuation of $6,075,000. The lead investor will also have an option to invest an additional $5.1 million within six months of closing on the same terms. Use of proceeds from these transactions will be for working capital to grow Medical Alarm Concepts Holding's business operations and to complete two targeted acquisitions.
"This major investment is a testament to the success we have already achieved and an endorsement of the plans we have for the future," said Ronnie Adams, CEO of Medical Alarm Concepts. "These proceeds will allow us to accelerate our reporting with the SEC, which remains one of our top priorities, and to allow us to further enhance our domestic and international distribution. Finally, we plan to acquire one company in its entirety and we are planning to take a large stake in another expected very fast growing operation. This investment is about creating additional value for current and future MDHI common shareholders, our management team members, and our new investment partners."
Mr. Adams continued, "Over the past few months the company has realized a very steep ramp in its revenue growth rate due to acceleration in monthly monitoring services contracts. These monthly contracts produce very high quality and high margin recurring revenues and grow each day as new customer contracts are added. The Company has now reached the point where contracted monthly recurring revenues exceed the expected expenses. The company plans to operate on a profitable basis for full-year 2013. It is expected that acquisition revenues will enhance this operating profitability and meaningfully add to overall shareholder value. We are very excited to have a fund the caliber of Gramercy Millennium Group on board with MDHI to not only invest in our operation, but to provide valuable management insight to help us grow, prosper and create additional shareholder value."
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