MyMedicalRecords.com, a consumer-facing web site with $10 million in venture backing, plans to close its merger with publicly traded Favrille Inc in January. MyMedicalRecords is based in Los Angeles and has not disclosed the names of its venture backers.
Favrille, Inc. (OTC Bulletin Board: FVRL) and MyMedicalRecords.com, Inc. (“MMR”), a health information company focused on secure Web-based storage of electronic Personal Health Records (PHRs), announced today that their merger is now expected to close in January 2009.
“As we had announced earlier this month, two significant conditions for closing the merger, MMR’s stockholder vote and settlement with creditors holding more than 85% of the dollar value of all of Favrille’s known creditor claims, have been accomplished,” said John P. Longenecker, President and CEO of Favrille. “We are now pleased to announce that a third significant condition, completion of the audit of MMR’s financial statements for the years ended 2005 through 2007 is well underway with completion expected in early January. We anticipate closing the transaction in January 2009.”
The merger is subject to customary closing conditions including Favrille meeting certain minimum cash requirements as of closing. The audited financial statements for MMR will be available shortly after closing.
Additional Information about the Merger and Where to Find It
On November 13, 2008, Favrille filed a Current Report on Form 8-K with the SEC that includes copies of the definitive merger agreement and other related agreements as exhibits. A copy of the Form 8-K, as well as other filings containing information about Favrille, is available without charge, at Favrille’s website (http://www.favrille.com) and the SEC’s website (www.sec.gov).
About MyMedicalRecords.com, Inc.
MyMedicalRecords.com (MMR) provides secure and easy-to-use Web-based Personal Health Records and Electronic Safe Deposit Box storage solutions to consumers, healthcare providers, employers, insurance companies and professional organizations. MMR is 100% user-controlled and allows individuals to access their personal medical records and other important documents such as wills, insurance policies and financial records anytime from anywhere using an Internet-connected computer. Based on proprietary patent-pending technologies, MMR enables documents, images and voicemail messages to be transmitted in and out of the system using a variety of methods, including fax, file upload and e-mail. For more information, visit http://www.mymedicalrecords.com.
Statements in this press release that are not strictly historical in nature constitute “forward-looking statements.” Such statements include, but are not limited to, statements regarding the proposed transaction, including the timing for closing, the completion of MMR’s audited financial statements and Favrille’s ability to settle creditor claims. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Favrille’s actual results to be materially different from historical results or from any results expressed or implied by such forward- looking statements. These factors include, but are not limited to, the risk that Favrille and MMR may not be able to complete the proposed transaction in a timely manner or at all, risks related to the current uncertainty and instability in financial and lending markets, risks relating to Favrille’s ability to negotiate settlements with its creditors, risks relating to the ability of Favrille and MMR to satisfy conditions to closing the proposed merger transaction and additional risks discussed in Favrille’s filings with the Securities and Exchange Commission. The combined company will also be subject to a number of risks and uncertainties, including risks relating to the need to have access to additional capital to finance the business until it can generate sufficient cash flow from operations and risks relating to the adoption of personal health care records and the development of a viable revenue generating business model. All forward-looking statements are qualified in their entirety by this cautionary statement. Favrille and MMR are 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.