BEIJING, July 31, 2012 (GLOBE NEWSWIRE) -- Medical Care Technologies Inc. (OTCBB:MDCE), a growing American company providing Western healthcare products distribution and children's healthcare services in China, is pleased to announce, in conjunction with its Hong Kong subsidiary, has secured over $800,000 in additional financing for further securitization of its Shenzhen health center project and general working capital.
Funding participation included the Company's joint venture partner, Ocean Wise International Industrial Limited ("Ocean Wise"), existing shareholders and new accredited investors. These financings were completed on significantly better terms for the Company than prior financings and included strong participation from loyal shareholders. A large portion of the funds will be maintained in a controlled account as part of the security bond for the Shenzhen location license. Additional financing for construction is currently being negotiated.
Luis Kuo, Chief Operations Officer, stated, "Securing such substantial funding validates our underlying direction with children's healthcare in China. We greatly appreciate the vote of confidence from our partners and shareholders in providing this funding which will enable us to make more concerted progress with the Shenzhen location."
The Company continues to attract strong investment and funding interest. Last week, a 6-month 10% convertible promissory note was issued in the amount of $29,500 to a current funding partner and $15,000 was raised through a securities purchase agreement from a new investor. Further equity financing is expected to continue in order to secure additional funding for general working capital purposes. The Company is committed to filing a registration statement to register the underlying shares purchased through securities purchase agreements as soon as practicable.
Over the past 60 days, steps have been taken to stabilize the balance sheet, reduce debt and expand healthcare activities. In the midst of a breakthrough that began last summer, a turnaround is being fueled by funding that previously was not available. Since the June 25th news release, which announced a reduction of debt of $325,000 and note re-negotiations of $155,000, a further reduction in debt in the amount of $90,250 and re-negotiated notes totaling $15,000 have occurred.
"We believe that these ongoing sustaining initiatives that we've implemented to reduce our debt and strengthen our balance sheet will improve our bottom line to provide financial stability, demonstrating that our strategic plan – which includes investments to build Western-style, state-of-the-art health facilities in China – have and will continue to produce positive results," stated Ning Wu, President of Medical Care Technologies Inc.
About Medical Care Technologies Inc.
Medical Care Technologies Inc. is traded under the symbol MDCE on the OTCBB and is headquartered in Beijing, China. MDCE, through joint ventures or Chinese subsidiaries, develops a network of children's health facilities in the larger urban areas throughout China. Services are geared towards the advancing economic middle-class and upper class Chinese families. Specializing in the care of children between the ages of 3 to 16, MDCE's role is to enhance the overall well-being of the family and community and to expand its pediatric services to include preventative health and wellness education. MDCE, through its children's health facilities, will also distribute a diverse range of industry-leading pharmaceutical and nutraceutical product lines. MDCE's main mission is simple – to become a healthcare service provider leader in children's health. Information on the Company can be found at www.sec.gov and the Company's website at www.medicaretechinc.com.
Safe Harbor Statement
All statements contained in this press release, other than statements of historical fact, are forward-looking statements, including those regarding: MDCE's products, services, capabilities, performance, opportunities, development and business outlook, guidance on our future financial results and other projections or measures of our future performance; the amount and timing of the benefits expected from strategic initiatives and acquisitions or from deployment of new or updated technologies, products, services or applications; and other potential sources of additional revenue. These statements are based on our current plans and expectations and involve risks and uncertainties that could cause actual future events or results to be different than those described in or implied by such forward-looking statements. These risks and uncertainties include those relating to: lack of operating history, transitioning from a development company to an operating company, difficulties in distinguishing MDCE's products and services, ability to deploy MDCE's services and products, market acceptance of our products and services; operational difficulties relating to combining acquired companies and businesses; our ability to form and maintain mutually beneficial relationships with customers and strategic partners; changes in economic, political or regulatory conditions or other trends affecting the healthcare, Internet, information technology and healthcare and pharmaceutical industries, and our ability to attract and retain qualified personnel. Other risks and uncertainties may include, but are not limited to: lack of or delay in market acceptance and fluctuations in customer demand, dependence on a limited number of significant customers, reliance on third party vendors and strategic partners, ability to meet future capital requirements on acceptable terms, continuing uncertainty in the global economy, and compliance with federal and state regulatory requirement. Further information about these matters can be found in our Securities and Exchange Commission filings. We expressly disclaim any intent or obligation to update these forward-looking statements.