BEIJING, Feb. 4, 2013 /PRNewswire/ -- Medical Care Technologies Inc. (OTCBB: MDCE), a growing American medical company providing information technology systems, family and children's healthcare services and Western healthcare products for distribution in China, is pleased to announce that it has received approval from a major Australian financing firm who will underwrite a minimum of US $500,000 in equipment financing to fund the Company's acquisition of medical equipment for its Shenzhen health clinic.
The financing will be guaranteed by a principal of the Company's Chinese joint venture partner and secured by the medical equipment purchased. Thus far, MDCE has identified and sourced pricing of US $365,000 in medical equipment and clinical tools for its Shenzhen clinic. Terms of the financing are expected to be in the range of 36-60 months, with an effective interest rate of between 6-8% and can be repaid without penalty at any time. Title to the medical equipment will transfer to the Shenzhen clinic operations at the completion of the term. The financing proposal is subject to customary closing conditions.
Medical Care Technologies Inc. announced last fall, the signing of an MOU with Dragon Link Group Ltd. of Hong Kong, for an infrastructure financing of approximately US $1.5M. With a minimum US $500,000 approval from the Australian underwriter, Dragon Link's infrastructure financing will reduce to US $1M. This arrangement between Dragon Link and MDCE, which encompasses the Shenzhen clinic, a Dongguan location, and future operations across Guangdong Province, is still very much in play. Dragon Link's extensive due diligence of MDCE's proposed clinic operations is nearing completion and expects to close definitive documents in due time.
"Securing this important element of our equipment financing is essential to us meeting our healthcare services objectives," commented Luis Kuo, President. "The financial support of this major underwriter further validates our belief that the Shenzhen clinic is an excellent opportunity with significant potential.""Our unwavering goal is to lay an unshakeable foundation for our Western-style healthcare initiatives across China, initiatives that will prosper for decades and will become cornerstones of China's future healthcare system", said CEO Ning Wu. "We are taking the time to ensure that every step we take in these crucial days of our clinic's development stage is measured and sure-footed," she added.