$MLKNA Capital Raise puts MedLink on the Fast Track
Date: December 1, 2010 5:36 PM Publisher: Brittney Barrett Categories: US Markets Tags: ehr, electronic medical records, medlink, equities, the equities group, aegis, (OTCBB:MLKNA)
MedLink (OTC.BB:MLKNA ), a health information technology provider, announced the closing of an aggregate of $2.25 million in financing from Aegis Capital Corp. This represents a major opportunity for MedLink to position itself more firmly in the market of electronic health records (EHR), a field that is expected to grow significantly in the coming months and years as details of Federal health care reform are enforced. Aegis, the sole placement agent and exclusive investment banker to MedLink, placed $1.0 million through a private placement, and an additional $1.25 million in capital through the sale of convertible notes sold exclusively to institutional investors for the purpose of fast tracking the Company as a leader in the EHR market that is expected to grow by more than 400% to $6.8 billion by 2013. Increased sales and marketing funded by the investment, augmented by the recent acquisition of MedAppz, which expands the Company’s EHR footprint to more than 23 states as announced earlier this month, will also be on the fast track as a result of the recently injected capital.
Ray Vuono, MedLink’s CEO is confident the investment will help the company meet their ambitions."With this financing, the company is well positioned to deliver its suite of Electronic Health Record (EHR) and Healthcare Information Technology communication platforms,” he said. Vuono also notes what he describes as “the increasing demand of the industry,” as healthcare facilities of all sizes adopt EHR technology in order to benefit from the efficiencies and the incentives both on a State and Federal level.
The Obama stimulus package allocated more than $30 billion under the HITECH Act, distributing up to $64,000 per physician to assist in the cost of adopting EHR technology which they can receive by submitting Quality Reports to the Center for Medicare and Medicaid Services (CMS), demonstrating the adoption and meaningful use of an EHR system. Significant investment has been made on both the federal and state level from the government to generate a national electronic health record for every American by 2014, a lofty objective that MedLink is angling to help reach. The MedLink EHR was one of only two EHR systems Qualified by CMS for direct quality reporting from an EHR in 2010 along with MedAppz’ ISuite EHR, now owned by MedLink, creates a significant competitive advantage and along with recent developments and a climate wont for progress could make the lofty national goal a reality for the company, with MedLink leading the pack. The bi-partisan Healthcare IT initiative is expected to save the healthcare industry billions through the reduction of inefficiencies alone, while ultimately lowering costs and providing improved patient care. Further stacking the odds in their favor is the financial support of Aegis.
“We look forward to providing the company with the continued support necessary to assist in its growth,"said David Bocchi, Director of Investment Banking at Aegis Capital. "MedLink represents a rare and exciting opportunity in a competitive and consolidating space where it continues to demonstrate it has the tools and resources necessary to successfully become an industry leader,” he added.
The deal is well timed for such a task. Only 14% of healthcare providers in the U.S. are currently employing the technology, leaving plenty of room for one company to assert itself ahead of its competitors. MedLink sees the financial support from Aegis as affirmation that they are a corporation with the potential to do so. “We are extremely pleased to have the support of our investors who affirm our corporate vision, and the overwhelming interest in the offering is a testament to the MedLink team and the cutting edge technology we are providing to the healthcare market," said Vuono.
About MedLink MedLink is a healthcare IT company providing the medical community with products and services for the creation, management, and sharing of medical information. The company's flagship product, MedLink TotalOffice EHR 3.1, a CCHIT Certified® 08 Ambulatory EHR, provides physicians with full EHR and practice management functionality. For more information regarding MedLink's products and services, please visit www.medlinkus.com. About Aegis
Aegis Capital is a full-service boutique brokerage operation focused on middle-market corporate finance, research, and valuation services. Aegis actively manages over $2 billion of retail customer assets with over 200 registered representatives in 8 corporate locations. Aegis Capital Corporation was founded in 1984 by Robert Eide, the current CEO and Chairman. Its origins were based on servicing the specific needs of an extremely affluent customer base. For more information, please visit the Aegis website at www.aegiscapcorp.com. Safe Harbor Statement This news release may contain forward-looking statements within the meaning of the federal securities laws. Statements regarding future events, developments, the Company's future performance, as well as management's expectations, beliefs, intentions, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. These forward-looking statements are subject to a number of risks and uncertainties, outlined in our 2009 Annual Report on Form 10-Kavailable through www.sec.gov. The Company undertakes no obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise.
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