PLANTATION, Fla., Nov. 17, 2005 (PRIMEZONE) -- MEDirect Latino Inc. (Pink Sheets:MLTO) (http://www.medirectlatino.org), a U.S. based Company and the first national provider of direct-to-consumer Medicare reimbursed medical products focused exclusively on chronic diseases afflicting the Hispanic community, today announced that the Board of Directors selected not to extend the exercise period for the Company's outstanding C Warrants, which were exercisable at $7.50 per share on or before November 15, 2005. If exercised, each C Warrant would have converted into one share of the Company's Common Stock. After consideration of requests from warrant holders to reduce the price and/or extend the exercise period for up to an additional six months, the Board of Directors elected neither to extend the exercise period nor reduce the exercise price. The Company has informed its transfer agent of the Board's decision, with such warrants being removed from the shareholder records as potential share issuance. The Company's action has removed a potential dilution to existing shareholders of a total of 1,200,697 shares.
Mr. Raymond Talarico, CEO of MEDirect Latino in discussing the Company's decision stated, "As the Company is currently profitable and continues to exceed its projections on a monthly basis, management is focusing on preserving and enhancing shareholders' value and strategic associations that can move the Company rapidly forward, while building the MEDirect Latino brand and maximizing the results of our national media campaign. MEDirect Latino continues take the necessary steps to achieve our revised operating results guidance for our fiscal year that ends in June, 2006 of a minimum of $15,000,000 of gross revenues and net income of $5,000,000. We expect to file our Form 10 the week of November 28 to become a reporting company, which is the first step to increasing our market recognition. Our early results in November indicate that we will continue to increase our billings and new client originations over October, which had a 30% increase over September."
About MEDirect Latino
MEDirect Latino (Pink Sheets:MLTO) (www.medirectlatino.org) is a rapidly growing, uniquely positioned provider of direct-to-consumer Medicare reimbursed medical products focused exclusively on chronic diseases afflicting the Hispanic community in the United States and Puerto Rico. MEDirect is the only company positioned to serve the U.S. Hispanic healthcare market as a direct-to-consumer Medicare provider on an authentically national level. The Company's current focus is the distribution of products for the treatment of Type II diabetes specifically because of its disproportionate impact and increasing diagnosis rate within the U.S. Hispanic population, noting an incidence of 120% higher than among non-Hispanic whites. Type II diabetes was also targeted because of its unique status within the Medicare reimbursement regime and because of its high degree of correlation to other chronic conditions such as high blood pressure and heart disease. These other conditions represent considerable future market potential that will allow MEDirect to efficiently scale its model by leveraging its existing client base and infrastructure.
The current Hispanic market for MEDirect's products is conservatively estimated at approximately $748 million in the continental United States. The size of the opportunity is understated by such figures as an estimated 1.2 million of the over 4.1 million Hispanics in the United States over 65 eligible to receive Medicare benefits are currently collecting these benefits with an estimate that over 1.4 million of those Medicare-eligible Hispanics have diabetes (implying a potential continental U.S. market for MEDirect products of approximately $1 billion).
Safe Harbor Disclosure
This press release includes "forward-looking statements" within the meaning of the federal securities laws, commonly identified by such terms as "believes," "looking ahead," "anticipates," "estimates" and other terms with similar meaning. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company's projections and expectations are disclosed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions.
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