MedPro Agrees to Sell Patents on Three Blood Collection and Infusion Products to Greiner Bio-One

Agreement will also eliminate $30 million of MedPro long-term debt
Lexington, KY – January 7, 2013 – MedPro Safety Products, Inc. (OTCQB:MPSP), a leading developer of transformational technologies that enable safer medication delivery through both injection and IV delivery today announced it has signed an Asset Purchase Agreement with Greiner Bio-One GmbH and the holders of MedPro’s Senior Secured Notes due 2016. The agreement provides for the sale of MedPro’s patents associated with three blood collection and infusion products to Greiner.
The proceeds from the sale will be used to pay off MedPro’s $30 million of Senior Secured Notes. Greiner will pay $22 million on March 1, 2013, and an additional $7.4 million on February 1, 2014. MedPro will also release a $533,000 reserve account and issue preferred stock to the noteholders.
Upon the initial payment on March 1, 2013, the Senior Secured Notes will be retired and the manufacturing and distribution agreement between MedPro and Greiner, which obligates MedPro to make quarterly marketing assistance payments to Greiner, will terminate.
MedPro will retain an exclusive license on three of the patents sold to Greiner. Therefore, the sale of the patent and IP rights will not affect the development of MedPro’s passive safety drug delivery platform or its business with current customers.
“This transaction offers important benefits to MedPro and our shareholders,” said Wm. Craig Turner, Chairman and CEO of MedPro. “It will allow us to eliminate $30 million of long-term debt, significantly strengthening our balance sheet. We eliminate the marketing payment to Greiner of approximately $5.8 million over the next three years, reducing our operating expenses and enhancing our bottom line. Finally, it better positions us as we continue our efforts to drive additional marketing and distribution partnerships for our innovative, passive safety drug delivery platform and new developmental products.”
For additional details on the Asset Purchase Agreement, please refer to the Company’s filing on Form 8-K dated January 7, 2013.
About MedPro Safety Products, Inc.
Headquartered in Lexington, Kentucky, MedPro Safety Products, Inc. is a leading developer of transformational technologies that enable safer medication delivery through both injection and IV delivery. The Company licenses, develops and manufactures transformational technologies marketed through its global medical device partners. MedPro’s products address multiple product categories
within the medication delivery (injection and infusion) markets. Unlike competitive products currently available on the market, MedPro’s products incorporate safety features that operate without user activation, and therefore require little or no clinician training to use. The total global market opportunity for safer medication delivery and blood collection products is believed to be more than $6 billion. For additional information, please refer to the ‘Investor Relations’ link on the Company’s website (www.medprosafety.com).
Safe Harbor Statement
This release includes forward-looking statements based upon current expectations of the management of MedPro Safety Products, Inc. that involve risks and uncertainties, such as plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward- looking statements as a result of a number of factors, including our ability to identify and acquire medical safety device safety technologies with product development potential; our ability to successfully develop and bring products to market, including obtaining regulatory approvals; our ability to successfully increase sales of our products; our ability to obtain additional financing on satisfactory terms; our ability to attract and retain qualified employees; and governmental regulation associated with the medical safety products industry. Words such as "anticipate," "estimate," "plan," "continuing," "ongoing," "expect," "believe," "intend," "may," "will," "should," "could," and similar expressions are used to identify forward-looking statements. We refer you to the more detailed discussion of risks and uncertainties under "Risk Factors" in our Annual Report on Form 10-K and our other reports on file with the Securities and Exchange Commission.
Contact Information:
Investor Contact:
Doug Sherk/Jenifer Kirtland
EVC Group
415-568-9349
Media Contact:
Janine McCargo
EVC Group
646-688-0425
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