Medical Care Technologies Inc. disclosed some of the details about its finalization of an agreement with Great Union Corporation (GUC), whereby MDCE will acquire technologies from GUC information systems in exchange for shares of common stock.
While the transaction is, of course, subject to some closing conditions, the Board of Directors for both companies were unanimous in signing the deal which will provide MDCE with GUC’s various technologies in exchange for 57.3 million shares of common stock, allowing for increased vertical integration in MDCE’s primary sectors of operation.
The technology will enable the development of a healthcare and delivery site, and offer advanced connectivity to support an internationally standardized, secure business framework squarely focused on the booming Asian health industry.
This framework will give MDCE a significant growth opportunity in the entire spectrum of the Asian healthcare market, providing consumers, medical institutions, physicians and pharmacists the tools to streamline access to medical resources, education and wellness, health services, medical devices, pharmaceuticals and nutraceuticals.
This move is seen by the management of MDCE as a major step towards tapping into China’s growing healthcare market, where the life expectancy of the population is on the rise along with income and the demand by patients for better healthcare and quality of life.
US World Nutraceutical Ingredients Industry projected global demand for “nutrients and minerals” to reach $12.6 billion by 2013 in a recent report, with China and India leading the way in terms of overall economic growth and therefore subsequent demand, going so far as to declare that “China will remain the largest worldwide producer based on its extensive fine chemicals industry and aggressive pursuit of exports”.
Needless to say, the potential to make money in the healthcare sector in the Asian markets justifies this bold move by MDCE. A bureau of China’s Ministry of Health, the China Health Care Association, recently noted that the Chinese nutraceutical market alone had grown to $6B annually, despite being a relatively young market compared to that in the United States.
President of MDCE Patricia Traczykowski expressed excitement on behalf of the Company and its shareholders regarding the acquisition, noting that it would allow MDCE the ability to “target an expanding healthcare segment” and “venture into a country like China which is full of opportunities”.
Traczykowski described the strategy by saying that the Company would initially generate “e-management, nutraceutical and pharmaceutical product distribution revenues”, adding to MDCE’s already robust bottom line “through content licensing fees, email marketing revenues and e-commerce.”