CEO Q&As from past:
Can one of the moderators please get these back into the combined DD?
Previous CEO Q&A's
Q Congratulations on the new EP Health Sciences Division opening. Is the MPDD device FDA approved and do you consider that an asset in getting it accepted not only domestically, but internationally as well?
A The MPDD is approved by the FDA. What is necessary is to marry this device with the proprietary intervention therapy developed by Dr. Marcus which itself has its genesis in the treatment therapy pioneered by Hans Kraus, MD, the physician who
treated President John Kennedy for his Addisons Disease. Together, this intervention potentially can help millions of people around the world suffering from chronic back and neck pain and avoid unnecessary surgeries that are often unsuccessful in eliminating pain. I am one of those who had been diagnosed with compressed/bulging discs in C-2-C-7 and have tried many types of therapies including acupuncture, nerve blocks, facet injections and, recently was a candidate for a spinal fusion. Dr. Marcus’ MPDD and therapy changed all of that and I have been pain free for months. I also know that Dr. Marcus has had great results working with veterans of Iraq and Afghanistan who sustained significant painful back and neck injuries as a result of combat operations in those theaters of operation so the potential for benefit is clearly there. But as we all know, medicine in this country requires new innovative therapies pass muster with some of the most rigorous clinical trials in the world, so these things often take time. If shareholders are really interested in learning more about the MPDD and accompanying therapy, they should come to Dallas November 18-19 to the World Congress on Disabilities (www.thewcd.org) and attend the lecture given by Dr. Marcus on this subject. Indeed, attending the WCD will give you and any other shareholder who attends a first class perspective on the scope of what we do both in the civilian and military sectors. And yes, having FDA approval is generally regarded as a very important step in the process of gaining acceptance in the international and domestic medical community. But here again it is not so much the device itself as its application with the intervention therapy pioneered by Dr. Marcus that is important too.
Q You recently announced you have reached a restructure agreement with the major debt holders. With this restructure in place, can all your goals be accomplished without raising authorized share amounts or reverse split?
A We have reached an agreement in principle with our major debt holder, NIR and the details of that agreement need to be solidified and then voted on by shareholders. Nothing is going to be implemented without the expressed approval of our shareholder group. That being said, it is not our intention to implement a plan that will result in dilution for our shareholders. We are acutely cognizant of the negative vote of our shareholder group when a reverse split was proposed last year. Nothing in any of the press releases issued by our company makes mention of a reverse split or increase in authorized shares.
Q As we understand it, you are a major debt holder. Have you agreed to have more than 1/2 of your debt converted to shares too? Would this not mean you have more incentive than ever to raise shareholder equity?
A Yes, it is my intention to convert 50% of the amounts due and owing to me into equity as a condition of the restructuring agreement. Inasmuch as I am the second largest creditor next to NIR, I should think this would be viewed as a fairly important step and a reaffirmation of my commitment to this company and its mission. It also reinforces in me and I hope others in management additional incentive to try to increase shareholder value. Thus our value is aligned with those of our shareholders, a fact that tends to escape some people at times.
Q. With the new Health Sciences Division, do you anticipate EPGL will own and market biotech devices and other products?
A. One only has to read the PR headline about our new EP Health Sciences Division for the answer to that question. Nobody should be confused about that. EPGL is moving into significant new areas with the health sciences division. Our mission at EP has always been to help those impacted with disability and pain in all the ways we possibly can. There are many new things in development and announcements will come when it is appropriate to make such things public. Please continue to monitor the news about EPGL in the coming weeks and months ahead. We encourage all shareholders to attend the WCD in person or via the live webcast. You will learn a lot about EP and what it is all about.
-Joe Valenzano, CEO EP Global Communications, EP Health Sciences 9-26-2010
