LOS ANGELES, CA--(Marketwire - June 18, 2010) - (June 18, 2010) - MMRGlobal, Inc. (
"Over the past six months the question that is most asked by stockholders is 'How will the Company finance its growth, and will you do an equity line?' The Company has always been very open, honest and candid that all options were on the table," stated Robert H. Lorsch, MMRGlobal Chairman and Chief Executive Officer. "In analyzing various financing options for the Company, it was determined by the board that having the equity line in place is the right thing to do at this time. Many of the Company's stockholders have expressed concern about dilution and how this line of equity will affect them. My response has been to remind them that over the past year the Company has issued less than 15% of the Company's authorized shares, and that the person who is most affected by any dilution is myself and The RHL Group as the Company's largest stockholders. Therefore, I would ask that the stockholders support management and the board in its belief that having this equity line facility is good for the Company and helps ensure its growth for the future. The RHL Group credit line is simply not sufficient for the Company's worldwide expansion."
Additionally, the Company also anticipates that it will generate substantially more cash from operations over the next twenty-four months and will continue to identify other financing options, including relationships with strategic and institutional investors.
According to Ingrid Safranek, the Company's CFO, "We are positioning standby financing, which management may or may not use, in order to ensure continuity. The cost of launching Chartis alone will be nearly one million dollars through 2011, requiring translations, personnel, compliance, network infrastructure and platform enhancements necessary to comply with the Company's agreement with Chartis, in what we believe can represent the biggest worldwide deployment of a Personal Health Record."
Additionally, the Company's agreements, including opportunities presented through Kodak and the Latino Coalition, could require staffing in other countries along with the need to establish and train for multilingual global call centers. Moreover, next month, MMR will be announcing the re-launch of MyEsafeDepostBox with a new skin and special Chartis branding, so the need is there to support continued product development, and, further, to adapt the Company's IP products for the Clinical Trials market, as well as costs pertaining to protection of IP which the Company inherited from its merger with Favrille and efforts to license it.
"Of all the financing opportunities available to us, this type of transaction allows the Company to draw cash when management determines it," said Lorsch. "This ensures the Company will be able to continue to meet its obligations. As sales increase, the need for the facility will begin to disappear. The contracts this company has signed and the products we will continue to introduce should ultimately enable the Company to eventually finance its growth without this type of credit facility."
About MMRGlobal, Inc.
MMR Global, Inc., through its wholly-owned operating subsidiary, MyMedicalRecords, Inc. ("MMR"), provides secure and easy-to-use online Personal Health Records ("PHRs") and electronic safe deposit box storage solutions, serving consumers, healthcare professionals, employers, insurance companies, financial institutions, and professional organizations and affinity groups. MyMedicalRecords enables individuals and families to access their medical records and other important documents, such as birth certificates, passports, insurance policies and wills, anytime from anywhere using the Internet. The MyMedicalRecords Personal Health Record is built on proprietary, patented technologies to allow documents, images and voicemail messages to be transmitted and stored in the system using a variety of methods, including fax, phone, or file upload without relying on any specific electronic medical record platform to populate a user's account. The Company's professional offering, MMRPro, is designed to give physicians' offices an easy and cost-effective solution to digitizing paper-based medical records and sharing them with patients in real time through an integrated patient portal. MMR is an Independent Software Vendor Partner with Kodak to deliver an integrated turnkey EMR solution for healthcare professionals. MMR is also an integrated service provider on Google Health. To learn more about MMR Global, Inc. and its products, visit www.mymedicalrecords.com and view the videos at www.mmrvideos.com.
Forward-Looking Statements
Any statements contained in this press release that refer to future events or other non-historical matters are forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "should," "expects," "believes," "potential," or the negative of such terms and other comparable terminology. MMRGlobal, Inc. and Dutchess each disclaim any intent or obligation to update any forward-looking statements. These forward-looking statements are based on MMRGlobal, Inc.'s and Dutchess' reasonable expectations as of the date of this press release and are subject to risks and uncertainties that could cause actual results to differ materially from current expectations including any approvals of the equity facility by the SEC. The equity line facility remains subject to various risks and uncertainties related to changes in MMRGlobal, Inc.'s and Dutchess' business prospects, results of operations or financial condition, and such other risks and uncertainties as detailed from time to time in MMRGlobal, Inc.'s public filings with the U.S. Securities and Exchange Commission.
Contact Information:
CONTACT:
Bobbie Volman
MMRGlobal, Inc.
(310) 476-7002, Ext. 2005
bvolman@mmrmail.com
Michael Selsman
Public Communications Co.
(310) 553-5732
ms@publiccommunications.biz