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MMRGlobal Readies to Exploit Consolidation in Health IT(April 30, 2012)
LOS ANGELES, CA -- (Marketwire) -- 04/30/12 -- MMRGlobal, Inc. (OTCBB: MMRF) ("MMR"), a leading provider of Personal Health Records (PHRs), MyEsafeDepositBox storage solutions and electronic document management and imaging systems for healthcare professionals, today announced that on Friday, April 27, 2012, the Company filed a Preliminary Proxy Statement in advance of the Company's Annual Meeting of Stockholders scheduled on June 20, 2012. The current proxy contemplates allowing the Company to have sufficient liquidity to take advantage of what is happening in the marketplace given considerable consolidation and other M&A opportunities in eHealth sparked by the HITECH Act, healthcare reform and new healthcare verticals. The Company is requesting shareholder approval of a plan that includes having the necessary liquidity and equity to exploit these opportunities and ultimately have enough shares to potentially reverse out of the OTC following one or more significant business transactions that the Company is working on, including the possibility of spinning off its biotech assets to MMR Life Sciences Group, a wholly owned subsidiary that was formed to exploit biotech assets should it elect to do so.
The Company has historically not used its equity unless there has been a compelling reason to do so. As explained in the Proxy, management and the board have authorized the use of equity at significant premiums to the market. For example, the Company has nearly 64 million warrants reserved at an average price of $0.31 per share, or more than ten times the current price of the Company's common stock. Nearly 44 million options are reserved at an average price of $0.168 per share, or more than five times the current price of the Company's common stock.
Shortly after the reverse merger with Favrille, Inc. in January 2009, shareholders authorized 400 million additional shares of the Company's stock. Of those shares, after nearly three years, only 225 million are issued and outstanding as of April 23, 2012. This makes a total issued and outstanding of approximately 374 million shares. Because health IT is growing, MMR believes that Electronic Health Records and Personal Health Records are how medicine will operate in the future. Accordingly, the Company is focused on having the necessary liquidity to exploit opportunities in the market.
When MMR first started selling the concept of purchasing a PHR online, it could barely identify 3,000 persons in a day searching the term Personal Health Record, or words to the equivalent. Today, that number is in the tens of millions. Government and rapidly increasing numbers of healthcare professionals recognize the value and importance of the PHR. The days of the paper chart are quickly evolving into an online form and the time for eHealth and patient-controlled medical records are a legislative reality that a majority of consumers say they want. Meantime, MMR believes it is the only globally patented Personal Health Record product and service that can be integrated with any healthcare professional's office, including any EMR system in use by physicians and hospitals globally.
According to Robert H. Lorsch, MMRGlobal CEO, "It increasingly looks like MyMedicalRecords will remain one of the leading PHR products and services by the end of full implementation of the HITECH Act in 2014. In addition, our significant group of patents creates a barrier to entry for competitors which we plan to take advantage of by licensing our intellectual property."
Competing with companies that spend hundreds of millions of dollars in the health IT market, MMR spends a fraction of that amount and still enjoys strategic partnerships, sales and licensing agreements designed to generate revenues with UST Global®, 4medica, Alcatel-Lucent and ng Connect, Chartis Insurance (formerly AIG), Coverdell benefit management, China Joint Venture Partner Unis-Tonghe, Australian licensee VisiInc, Interbit Data, MedicAlert®, REACH(SM)Air Medical Services, VIDA Senior Resource, Inc., XN Financial®, healthcare professionals and surgery centers throughout the United States, and numerous others as disclosed in MMRGlobal filings and press releases.
MMR was founded in 2005, the same year Steve Case, co-founder of AOL, started Revolution Health Group. He spent a reported $250 million on the Revolution Health portal launched in 2007; it failed. Then came Google Health. They spent half-a-billion dollars trying to make their vision of eHealth and Personal Health Records work; it failed. There was also the Wells Fargo vSafe(SM) service. The bank spent tens of millions of dollars on the eStorage solution which included online health records for customers. Wells Fargo vSafe ceased to exist at the end of March this year.
Microsoft® HealthVault® has also had its share of challenges and integration issues. Consumer usage of HealthVault is lower than anticipated and as a result Microsoft is in the process of reinventing its eHealth strategy in a joint venture with GE Healthcare. Kodak went into the health IT business, partnering with MMR by building proprietary branded MMR scanners. The MMRPro program continues to grow while Kodak and its eHealth initiative is being restructured. And last week, Allscripts, one of the brightest stars in health IT, underwent a major upheaval reporting the departure of the company's Chairman, CFO and three directors.
MMR, the little engine that very few thought could, survives with more than 700,000 members, two percent subscriber attrition, and the only globally patented Personal Health Record product and service that works from any doctor's office, hospital or other professional healthcare facility and with any EMR in the world.
"Instead of the hundreds of millions, even billions of dollars, other companies have spent on developing Electronic Medical Records systems, MMR has only spent a fraction of the costs including responsible deployment of our equity, which was the reason we decided to be public in this marketplace," Lorsch added. "We have survived a number of early stage shakeouts in the market and now own three major health IT patents with nearly 190 additional patent claims as a barrier to competitive entry."
About MMRGlobal, Inc.
MMRGlobal, Inc., through its wholly-owned operating subsidiary, MyMedicalRecords, Inc. ("MMR"), provides secure and easy-to-use online Personal Health Records ("PHRs") and electronic safe deposit box storage solutions, serving consumers, healthcare professionals, employers, insurance companies, financial institutions, and professional organizations and affinity groups. The MyMedicalRecords PHR enables individuals and families to access their medical records and other important documents, such as birth certificates, passports, insurance policies and wills, anytime from anywhere using the Internet. MyMedicalRecords is built on proprietary, patented technologies to allow documents, images and voicemail messages to be transmitted and stored in the system using a variety of methods, including fax, phone, or file upload without relying on any specific electronic medical record platform to populate a user's account. The Company's professional offering, MMRPro, is designed to give physicians' offices an easy and cost-effective solution to digitizing paper-based medical records and sharing them with patients in real time through an integrated patient portal. MMR is an Independent Software Vendor Partner with Kodak to deliver an integrated turnkey EMR solution for healthcare professionals. Through its merger with Favrille, Inc. in January 2009, the Company acquired intellectual property biotech assets that include anti-CD20 antibodies and data and samples from its FavId/Specifid vaccine clinical trials for the treatment of B-Cell Non-Hodgkin's lymphoma. To learn more about MMRGlobal, Inc. and its products, visit www.mmrglobal.com.
Statements in this press release that are not strictly historical in nature, whether or not such statement relates directly to the Company's future performance, management's expectations, beliefs, intentions, estimates or projections, constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. Some can be identified by the use of words (and their derivations) such as "need," "possibility," "offer," "development," "if," "negotiate," "when," "begun," "believe," "achieve," "will," "estimate," "expect," "maintain," "plan," "intend" and "continue," or the negative of these words. Factors that could cause or contribute to such differences include, but are not limited to, the risk the Company's products are not adopted or viewed favorably by the healthcare community; business prospects, results of operations or financial condition, including variations in our quarterly and year-end operating results; risks related to the current uncertainty and instability in financial and lending markets, including global economic uncertainties; timing and volume of sales and installations; length of sales cycles and the installation process; market acceptance of new product introductions; ability to establish and maintain strategic relationships; relationships with licensees; competitive product offerings and promotions; changes in government laws and regulations and future changes in tax legislation and initiatives in the healthcare industry; undetected errors in our products; possibility of interruption at our data centers; risks related to third party vendors; risks related to obtaining and integrating third-party licensed technology; acceptance of the Company's marketing and promotional campaigns; risks related to a security breach by third parties; risks associated with recruitment and retention of key personnel; maintaining, developing and defending our intellectual property rights; licensing and exploitation of our patent portfolio both in the U.S. and internationally; uncertainties associated with doing business internationally across borders and territories; and additional risks discussed in the Company's filings with the Securities and Exchange Commission. The Company is providing this information as of the date of this release and, except as required by law, does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.
Public Communications Co.
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