OTCBB-WNDM Announces LOI to Acquire VHGI Assets for $10 Million Cash/Stock
FORT WORTH, Texas, Nov. 5 Wound Management Technologies, Inc., (WNDM), announced today that it has entered into a Letter of Intent to purchase all healthcare-related assets of Virtual Health Technologies, Inc. (OTC Bulletin Board: VHGI). The deal provides for VHGI to be paid $1,000,000 in cash and debt, 4,000,000 shares of WNDM and a royalty agreement for revenues generated by WNDM on the Veriscrip technology being acquired from VHGI. WNDM closed at $2.00 per share on 11/4/09 and VHGI closed at $0.27 per share on 11/4/09.
"WNDM will be acquiring Medical Office Software, Inc. (MOS), Secure eHealth, LLC, and the Veriscrip technology from Virtual Health Technologies, Inc.," stated Scott Haire, CEO of WNDM. "These businesses fit well with WNDM's domestic plans to leverage its existing infrastructure to develop opportunities within the Healthcare marketplace, and focus on the U.S. Government healthcare technology Initiative. We are confident that this will add tremendously to our bottom line. WNDM will continue to target major pharmaceutical companies from both a wound care product perspective as well as a medical technology company, and focus on increasing revenues and maximizing shareholder value."
"WNDM will be able to significantly expand its product distribution throughout various medical facilities with the acquisition of an established client base of approximately 1,500 doctors throughout the US currently using our technology. In addition many of these physicians have ongoing relationships with nursing homes which necessitate a need for improved wound care technology. This acquisition translates into the potential for significant increased sales for WNDM's core wound care product line," stated Ken Barnes, President of Medical Office Software.
Debbie Jenkins, Board member of VHGI, states, "As we continue to work with e-health we realize VHGI's technology plus WNDM's core sales and development network greatly complement each other, equaling a win for both companies."
The closing of the above transaction will be conditioned among a number of things, including the execution and delivery of a mutually acceptable definitive purchase agreement and the approval of the Board of Directors of both companies as well as the shareholders of VHGI.
For Wound Management Technologies Shareholder Information please call Ronnie Ambrose at 954-357-0614.
About Wound Management Technologies, Inc.
Wound Management Technologies, Inc. (OTC Bulletin Board: WNDM), with its corporate headquarters in Fort Worth, Texas, and regional offices in Ft. Lauderdale, Florida is a rapidly growing provider of specialty medical products and advanced biotechnology solutions. The Company is leveraging its existing technology and infrastructure to develop opportunities within the International Biotechnology and Genetic Engineering fields. WNDM also believes it is positioned to develop its technology in Cancer Treatment. For more information on the Company please visit www.woundmanagementtechnologies.com or call our shareholder information department at 954-357-0614.
About VirtualHealth Technologies, Inc.
VirtualHealth Technologies, Inc. is committed to being the leader in the development and distribution of next generation solutions that connect healthcare providers to the rest of their community securely and efficiently. VirtualHealth's foundation is based on years of experience in providing highly sophisticated technology solutions to its existing medical customers and has branched out to include the pharmaceutical industry, as well as State and Federal Regulatory Agencies. VirtualHealth Technologies, Inc. is headquartered in Lexington, Kentucky, with offices in Texas, Georgia and Florida. For more information, visit www.virtualhealthtechnologies.com
"Safe Harbor" Statement: Under The Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development are "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. This document may contain forward-looking statements concerning the Company's operations, current and future performance and financial condition. These items involve risks and uncertainties such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, the ability to consummate and integrate acquisitions, and other risks and uncertainties detailed in the Company's SEC filings. The Company undertakes no obligation to revise any of these statements to reflect the future circumstances or the occurrence of unanticipated events.
SOURCE Wound Management Technologies, Inc.
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