MEDAFOR SHAREHOLDERS VOTE OVERWHELMINGLY TO RE-ELECT DIRECTORS AT ANNUAL MEETING
– CEO Shope Says Company is Poised for Future Growth –
MINNEAPOLIS, June 10, 2010 – Medafor Inc. today announced that the Company’s shareholders had voted overwhelmingly to re-elect the current Board of Directors at the Company’s Annual Meeting held today in Minneapolis, Minnesota. Holders of approximately 70% of the outstanding shares cast their votes, with approximately 95% of those votes in favor of re-electing the nominees to the Board.
Michael Pasquale, Chairman of the Board of Medafor, said, “We appreciate the tremendous turnout and overwhelming shareholder support for our directors and the strategic direction that the Company is taking. This is a clear validation of the steps that the Board and management team have taken to build value for all shareholders.”
After the formal portion of the Meeting was concluded, Gary Shope, CEO of Medafor, made some comments on the state of the business. The following are excerpts from Mr. Shope’s remarks:
“Medafor completed 2009 with improved financial strength, increased revenues and operating profitability, and steady cash generation. I am pleased to report that we continued this positive momentum into 2010; unfortunately, our progress is being impeded by the fact that we are not currently selling product in those markets previously served by CryoLife under our Exclusive Distribution Agreement (“EDA”). As we previously disclosed, we have decided to treat our EDA as terminated, and, consequently, the lack of sales into those markets is having short-term impact on our current results. We view this situation as temporary, and once there is greater clarity as to the EDA, which is presently the subject of litigation, we fully expect to resume our growth path.”
“For the longer term, we see outstanding opportunities and are focused on initiatives to drive shareholder value and bring Medafor to the forefront of our industry. We are excited about our partnership with Magle Life Sciences, which ensures a stable long-term supply and allows for further collaboration to develop and enhance applications of our MPH product. We are focused on growth platforms in key specialty areas, which we have identified as vital growth areas for the MPH product. Our shareholders have been aware of the potential, and we are just now beginning to reach our stride and make an impact in these markets.”
“There is no doubt that the past six months have been challenging. We have been forced to spend a considerable amount of our time and money on the ongoing litigation and unsolicited takeover attempts by CryoLife, and this has been a drain on our resources. However, despite these challenges, we are fortunate to have shareholders who clearly understand and support our long-term vision for Medafor. We look forward to putting these distractions behind us, so that our Board and management team can turn its undivided attention to delivering strong performance and growing our business for the benefit of all of our shareholders.”
About Medafor Inc.
Medafor is a privately held Minnesota corporation based in Minneapolis. Medafor was founded to develop applications and markets for its patented, plant-based, flowable hemostatic powder technology. MPH(r) is a microporous, polysaccharide hemostatic agent that is engineered to rapidly dehydrate blood and accelerate clotting. Medafor received FDA approval for surgical use in 2006 and has held a CE Mark approval since 2003.
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Lyndsey Estin
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212-521-4800
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