|Global Medical Products H (U-GMDP) - News Release|
Global Medical Products Holdings, Inc. Issues Update to Company Activities
LAGUNA HILLS, Calif., Oct. 17 /PRNewswire-FirstCall/ -- Global Medical Products Holdings, Inc. reported today that it received a letter of interest regarding a $3.5 million financing proposal on October 3, 2003, the terms of which are still being negotiated. This letter of interest and its accompanying term sheet has an expiration of October 24, 2003, however, it may be extended after that date with the approval of all parties.
The financing is contingent on the acquisition of an 80,000 square foot building located in Piedmont, Alabama. As previously announced on July 31, 2003, this building will be used to house the Company's EZ Trac Labs unit, a manufacturing area for a patented anti-bacterial compound and other uses consistent with Company's growth plan. Presently, there is a pending lease for approximately 75 percent of the building which includes restaurant and kitchen facilities. This lease is contingent on the lessee obtaining State of Alabama approval of a gaming license to operate a Bingo Hall on the premises. The licensing application is presently being reviewed by the state authority and is scheduled for action for issuance or denial on Monday October 20th. Approval of local authorities has already been granted.
This loan will allow the Company to proceed to finalize the acquisition and licensing agreements announced late last year. Although those acquisitions, Global Glass Source Ltd. and Shaghai Ecom Trading Company and the Guangzhou Lin Bi Company and Yin Kang Medical Equipment Company licensing agreements, are technically closed, the stock consideration that was given as payment was rejected in January due to the dramatic decline in the valuation of the Company's common stock. The returned stock was placed in Trust with a third party, Niagara Enterprises, Inc., pending further negotiations related to the payment consideration. This resulted in a delay in taking actual possession until sufficient financial resources were acquired to satisfy the monetary consideration that is replacing the original common stock consideration.
Additionally the Company received on October 8, 2003 an inquiry letter from the Securities and Exchange Commission, Office of Emerging Growth Companies relating to certain postings in the Company's Forms 10-KSB and 10-QSB and certain previous press releases. The Commission is requesting that the reports be revised to include additional information and exhibits. The Company believes that this is a normal inquiry and has submitted the letter to accounting and legal staff for review and response.
The Company welcomes the inquiry and the resultant filings which have been requested. The Company feels that such an inquiry can only strengthen the Company by assuring that all postings, whether in S.E.C. filings or press releases meet the guidelines and regulations promulgated by that agency and are to the benefit of shareholders and potential investors.
For further information, please contact Doug Brown of Global Medical Products Holdings, Inc., +1-619-222-2568.
Global Medical Products Holdings, Inc.
CONTACT: Doug Brown of Global Medical Products Holdings, Inc.,