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| 8-K - MedPro Safety Products, Inc. | v198473_8k.htm |
Exhibit
99.1
MedPro
Safety Products Completes Second Royalty Monetization Transaction
Issues
Final $5 Million Tranche of Senior Secured Notes to Improve Balance Sheet and
Fund New Product Development Programs
Lexington, KY – October 6, 2010 –
MedPro Safety Products, Inc. (OTCBB: MPSP), a leading developer of
transformational technologies that enable safer medication delivery and blood
collection, announced today that it has completed the issuance of a final $5
million tranche of Senior Secured 14% Notes due 2016 in a private placement with
institutional investors. The terms of the Notes are the same as the
Senior Secured Notes sold in the initial $25 million tranche announced on
September 1. MedPro received approximately $4.6 million in net
proceeds from the transaction reported today, which was managed by Cowen and
Company, LLC.
“With the
closing of this transaction, we have additional financial resources to
accelerate the development of our remaining product portfolio without further
dilution to our shareholders,” said Craig Turner, Chairman and CEO of
MedPro. “With the proceeds from the previously announced Notes
placement and the transaction reported today, as well as the retirement of all
term debt, we now have approximately $17.5 million available to execute our
plan. Our goal is to generate revenue from at least one of the four
products remaining in our portfolio by the end of 2011. All four of
the products provide distinct advantages to both the patient and the caregiver
including a higher level of safety without modifying application
procedure. The response we have received from major global medical
supply companies to our products has been exceptionally strong and we are
actively pursuing negotiations that would position us to begin generating
returns to our shareholders,” Mr. Turner concluded.
About
MedPro Safety Products, Inc.
Headquartered
in Lexington, Kentucky, MedPro Safety Products, Inc. is a leading developer of
safer medication delivery and blood collection systems. The Company
licenses, develops and manufactures transformational technologies marketed
through its global medical device partners. MedPro’s products address
multiple product categories within the medical delivery (injection and infusion)
and blood collection (blood collection sets and blood tube holders)
markets. These products are considered the most passively available
on the market as they require little or no clinician training as compared to
competitive products. The total global market opportunity currently
addressed by the Company is believed to be in excess of $6
billion. For additional information, please refer to the ‘Investor
Relations’ link on the Company’s website
(http://www.medprosafety.com).
Exhibit
99.1
Safe
Harbor Statement
This
release includes forward-looking statements based upon current expectations of
the management of MedPro Safety Products, Inc. that involve risks and
uncertainties, such as plans, objectives, expectations and intentions. Actual
results and the timing of events could differ materially from those anticipated
in these forward- looking statements as a result of a number of factors,
including our ability to identify and acquire medical safety device safety
technologies with product development potential; our ability to successfully
develop and bring products to market, including obtaining regulatory approvals;
our ability to successfully increase sales of our products; our ability to
obtain additional financing on satisfactory terms; our ability to attract and
retain qualified employees; and governmental regulation associated with the
medical safety products industry. Words such as "anticipate," "estimate,"
"plan," "continuing," "ongoing," "expect," "believe," "intend," "may," "will,"
"should," "could," and similar expressions are used to identify forward-looking
statements. We refer you to the more detailed discussion of risks and
uncertainties under "Risk Factors" in our Annual Report on Form 10-K and our
other reports on file with the Securities and Exchange Commission.
Contact
Information:
Investor
Contact:
Doug
Sherk/Courtney Dugan
EVC
Group
415-896-6820
Media
Contact:
Steve
DiMattia
EVC
Group
646-201-5445