Here is the release:::::
Medical Technology Systems today announced that is has reached an agreement with it's lenders to amend its current loan agreement. The Loan Agreement primarily deals with issues related to a newly formed subsidiary of Medical Technology Systems, Inc.(MTS), LifeServ Technologies (LifeServ). Under the Loan Agreement, LifeServ will acquire the stock of the Company's software businesses. If certain criteria are met, the lenders will release LifeServ's assets from any and all liability under the Loan Agreement. The Loan Agreement also permits financing of approx. $1.2 million to be secured with certain assets of LifeServ and its subsidiaries. Approximately $700,000 of this financing has been received and LifeServ has executed a term sheet for an additional loan of $500,000.
MTS has agreed with its lenders that it will no longer fund the LifeServ businesses from its other operating subsidiaries, MTS Packaging Systems, Inc and Medical Technology Laboratories, Inc. The Company has funded in excess of $1.9 million to LifeServ over the past 11 months. In addition, MTS will be required to retire approximately $1 million of its existing debt from excess cash flow, if any, generated by the other operating subsidiaries.
Todd Siegal, President and C.E.O. of Medical Technology Systems, Inc. commented, "The management team of LifeServ has had excellent results in building a sound organization, completing product development, implementing new systems sales and increasing revenue. Siegal continued, " We believe that Mike Felix, President of LifeServ, and his management team will continue to grow LifeServ and enhance the value of this business for MSYS shareholders. MTS will continue to focus on its other core businesses which have historically enjoyed good growth and profitable operations."
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