MedMira Eliminates $11.8 Million in Debt through Debt Holder Settlement Plan

    




 HALIFAX, June 13, 2012 /CNW/ - MedMira Inc., (MedMira) , a  developer of rapid diagnostic technology and solutions, announced today  that it has been successful in reducing the Company's debt position by  CAD$11,834,592, representing a nearly 60% reduction in the Company's  current liabilities associated with promissory notes, long-term debt,  and convertible debentures.  To achieve this strengthened financial  position, MedMira has paid CAD$1,806,481, through various compromise  and negotiated debt holder settlements.  The net impact of this gain is  $10,028,111 or $0.026 per share. 

 "The Company's interest expense associated with these debts will be  reduced by more than half a million dollars per quarter.  MedMira is  committed to strengthening its balance sheet and the impact of these  debt settlements will be reflected in the upcoming annual financial  statements for fiscal year 2012," said Daniel Frid, CFO, MedMira Inc.   "Using our debt settlement plan, we began negotiations with several of  the Company's largest debt holders nearly one year ago and we are  pleased to see the successful implementation of the plan thus far.  Additional debt reduction and financial stabilization initiatives are  ongoing, and a key piece of MedMira's broader strategy for long term  growth and profitability." 

 MedMira's debt reduction initiatives enable the resources and support  required for global marketing and business development initiatives  aimed at fully exploiting the true value of the MedMira's patented  technology platform and advanced rapid diagnostics. 

 "We are confident that this significant reduction in debt together with  a recent investment from Andurja Beteiligungen AG, positions MedMira to  deliver on business development targets and achieve growth and  increased revenues in the near future," said Hermes Chan, CEO, MedMira  Inc.  "Key elements of our strategic business plan, including increased  financial stability, a global strategic partner network, and a strong  technology platform validated by world class organizations such as the  Canadian Forces and U.S. Army, are now aligned." 

 About MedMira 

 MedMira is a leading developer and manufacturer of flow-through rapid  diagnostics and technologies. The Company's tests provide hospitals,  labs, clinics and individuals with reliable, rapid diagnosis for  diseases such as HIV and hepatitis C in just three minutes. The  company's tests are sold under the Reveal®, Multiplo™ and Miriad brands  in global markets. MedMira's rapid flow-through HIV test is the only  one in the world to achieve regulatory approvals in Canada, the United  States, China and the European Union. MedMira's corporate offices and  manufacturing facilities are located in Halifax, Nova Scotia, Canada.  For more information visit MedMira's website at www.medmira.com. 

 This news release contains forward-looking statements, including  statements relating to growth in the Company's business, earnings and  profitability, and trends in demand for the Company's products, which  involve risk and uncertainties and reflect the Company's current  expectation regarding future events including statements regarding  possible future growth and new business opportunities.  Actual events  could materially differ from those projected herein and depend on a  number of factors including, but not limited to, changing market  conditions, successful and timely completion of clinical studies,  uncertainties related to the regulatory approval process, establishment  of corporate alliances and other risks detailed from time to time in  the company quarterly filings. 

 Neither TSX Venture Exchange nor its Regulation Services Provider (as  that term is defined in the policies of the TSX Venture Exchange)  accepts responsibility for the adequacy or accuracy of this release. 

MEDMIRA INC.


CONTACT:  Andrea Young, Corporate CommunicationsTel: 902-450-1588Email: [e-mail] 


    

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