TORONTO, ON / ACCESSWIRE / September 17, 2021 / Medifocus, Inc. (OTC PINK: MDFZF) and (TSXV: MFS.H.APH) (“Medifocus“or the”Society“) a biotechnology company with a portfolio of medical products comprising heat therapy systems used in the treatment of cancerous and benign tumors and prostate enlargement, has announced that it has initiated restructuring proceedings (the”Restructuring procedure“) by filing a claim for protection against creditors to enable the Company to meet the debt on its balance sheet.
On September 8, 2021, Medifocus began the restructuring process to ensure stability during the ongoing COVID-19 pandemic and to position the Company for sustained long-term growth. Weiss Fell Kour LLP is a restructuring advisor for Medifocus.
“Following a thorough financial and strategic review, we believe it is in Medifocus’ best interest to initiate restructuring proceedings to meet our financial obligations and restructure our balance sheet. We are deeply committed to our technology. As we begin this process, we are optimistic that the restructuring will allow us to continue to focus on developing emerging and effective treatments, ”said Douglas Liu, vice president of finance at Medifocus.
Medifocus has received and is considering a proposal from its secured lender (the “Secured lender“) to provide the debtor-in-charge (“SOAK“) financing to fund the restructuring as well as an asset purchase contract to acquire all of Medifocus’s assets. The asset purchase contract will serve as a workhorse contract in a proposed sale process that is to be approved by the court.If the secured lender proposal is accepted by Medifocus, the process of financing and selling DIP will be subject to court approval with notice to interested parties.
“We expect these procedures to have minimal impact on our day-to-day operations,” Liu said. “We thank the many patients who rely on our treatment systems, partners and customers for their support during this restructuring. “
The Company intends to provide further updates on the restructuring process when there are significant developments.
Caution Regarding Forward-Looking Statements
This press release includes certain statements that constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements include, without limitation, the commencement of the restructuring proceeding, the Company’s activities continuing without interruption in the ordinary course of business during the restructuring proceeding, including its intention to seek redress from the courts. , and meeting the day-to-day obligations to employees, suppliers and customers that continue to be met during the Restructuring Process, and the strategies, plans, objectives, goals, outlook, future performance or results of current products and intended statements of the Company, and other statements which are not historical facts, and such statements are generally identified by the use of terms such as “may”, “will”, “should”, “should”, “could”, “Could”, “foresee”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “probable”, “potential”, “continue” or negative or similar words, variations of such words or other comparable words or phrases, although certain forward-looking statements are expressed differently in rental.
You should be aware that the forward-looking statements included in this document represent the current judgment and expectations of management, and are based on current estimates and assumptions made by management in light of its experience and its perception of historical trends. , current conditions and expected future developments, as well as other factors it considers appropriate and reasonable in the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct and, therefore, forward-looking statements based on these estimates and assumptions could prove to be incorrect. Therefore, actual results, level of activity, performance or achievements or future events or developments could differ materially from those expressed or implied in forward-looking statements.
In addition, the Company’s business involves risks and uncertainties, many of which are beyond the control of the Company, and any of these risks and uncertainties could also affect whether forward-looking statements are found to be correct. ultimately correct and could cause the actual results, level of activity, performance or achievements or future events or developments of the Company to differ materially from those expressed or implied by forward-looking statements. These risks and uncertainties include, but are not limited to, the uncertainty associated with the Restructuring Procedure and the conclusion of definitive agreements; risks associated with restructuring costs; the financing and liquidity of the Company; the cooperation of the Company’s creditors; the Company’s ability to meet its outstanding obligations during the Restructuring Procedure; the Company’s ability to maintain relationships with its employees, suppliers and customers and other third parties in light of the events preceding and including the Restructuring Procedure; the ability to obtain goods and services in a timely and cost effective manner; the Company’s ability to comply with its financial and other commitments; the Company’s ability to obtain court approval for any petition; the outcome of the Restructuring Procedure; court decisions in restructuring proceedings or a decision of any other Canadian or US court; in general, the length of time the Company will operate within the framework of the Restructuring Procedure, the risks associated with any request from third parties, the potential negative effects of the Restructuring Procedure on the Company’s liquidity; competetion; strategic alternatives are not available on reasonable terms, or not at all; the inability of the Company to retain the key personnel necessary for the management of the business; the failure of the Company to successfully market its products and product candidates; costs and delays in the development and / or approval of the Company’s product candidates, including due to the need to conduct additional studies, or failure to obtain such approval of the Company’s product candidates for all expected indications or in all targeted territories; the inability to maintain or enter into, and the risks resulting from the Company’s dependence on collaboration or contractual arrangements necessary for the development, manufacture, marketing, marketing, sale and the distribution of any product; the Company’s dependence on the maintenance and renewal of contracts with customers, distributors and other counterparties (some of which may be negotiated from time to time), including the inability of Company to renew existing contracts or to enter into new contracts on favorable terms, and the risks that the Company may not be able to maintain the Company’s existing conditions with certain customers, distributors and other counterparties; the Company’s ability to protect its intellectual property and defend its patents; regulatory obligations and oversight; fluctuations in the value of certain foreign currencies, including the Canadian dollar, against the US dollar and other world currencies; changes in laws and regulations, including tax laws and unforeseen tax obligations; generally unfavorable economic, commercial and commercial conditions; and the risks detailed from time to time in the Company’s Securities and Exchange Commission (SEC) filings and reports and Canadian securities law filings, which are available on EDGAR at www.sec .gov, on SEDAR at www.sedar.com. You should not place undue importance on forward-looking statements and should not rely on such information as of any other date. We assume no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Email: [email protected]
Cell phone: 4432539888
THE SOURCE: Medifocus, Inc.
See the source version on accesswire.com: