BEIJING, Sept. 20, 2012 (GLOBE NEWSWIRE) -- Medical Care Technologies Inc. (OTCBB:MDCE), a growing American company providing children's healthcare services and Western healthcare products distribution in China, announced that it has clarified details of its license approvals for the full build-out of its planned children's health and wellness center in Shenzhen, China.
The three distinct phases in obtaining a medical clinic license in China must pass through multiple central, provincial and local department approvals.
Phase I License approval involved market feasibility studies and the submission of Medical Care Technologies Inc.'s business plans, accompanied by a bond posted to show proof of the Company's intentions to do business in China. Phase I costs were approximately $258,000 USD and the approval was issued on June 17, 2012.
Phase II License approved by the City of Shenzhen Health Department and fully backed and endorsed by the Central Government in Beijing, was granted based on Medical Care Technologies Inc.'s development, design, construction, financial, and facilities management capacity to undertake a project of this complexity.
China's laws restrict foreign ownership of medical clinics and hospitals located in their country. To comply with this legislation, the Company operates through a corporate structure consisting of its Hong Kong subsidiary, ReachOut Holdings Limited, and a Chinese joint venture partner.
A 'reserve fund' was established as proof to all three levels of government that the Company is financially backed to operate in China. The total reserve fund established by Medical Care Technologies Inc., its Hong Kong JV partner, Ocean Wise International Industrial Limited and their Chinese National JV partner, Shenzhen City Jin Yu Technology Limited ("Jin Yu"), was approximately $3M RMB (~$500,000USD).
Phase II License provided an important regulatory approval for the conversion of our 450 square meter site on Longcheng Road in the Longgang District of Shenzhen. Renovations of the planned health center are ready to commence pending the finalization of certain financing initiatives. Medical Care Technologies Inc. has signed an MOU with a private Hong Kong investment firm (Press Release dated September 13, 2012) and due diligence is currently underway to procure definitive agreements for up to $1.5M in equipment financing for the roll out of the Company's planned centers throughout Guangdong province.
Phase III License approval involves inspection of the completed health center by the Police, Fire, Environmental and Health departments of Shenzhen to ensure all building and environmental codes are met. Once this phase is passed, the Chinese government offices of the City of Shenzhen will approve and issue a business license to operate the clinic. This final License is issued for the duration of the health center's existence in that particular location.
"We continue our journey forward to build a great children's healthcare facility," said Ning Wu, CEO of Medical Care Technologies Inc. "Our health center will be a place where we can provide high quality care and services to meet the needs of our patients and their families."
The Phase II License approval document is available for viewing on the Company's website, www.medicaretechinc.com.
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.