SeeThruEquity Issues Special Update Note on OxySure System's (OXYS) Merger with Estill Medical Technologies
New York, NY / ACCESSWIRE / October 29, 2014 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has issued a special update note on OxySure Systems, Inc. (OXYS) regarding its announcement of its merger with Estill Medical Technologies, a private company.
OxySure provides short duration / emergency medical oxygen and respiratory solutions for mass market use. Using patented technology that combines two dry, inert powders to create medical oxygen, the company manufactures and markets the OxySure Model 615, a portable emergency oxygen system that has been approved by the FDA for sale over the counter without a prescription.
"We believe the merger is expected to result in synergies and growth opportunities, resulting in substantial long-term cost savings and long-term value for shareholders. The transaction also moves OxySure closer to its stated goal of uplisting the company to NASDAQ," stated Ajay Tandon, Chief Executive Officer of SeeThruEquity. "We are maintaining our price target of $1.27 for now and will closely follow the stock to determine whether to increase the target price upon consummation of the merger."
Highlights from the special update note are as follows:
OxySure Announces Merger with Estill Medical Technologies
On October 22, 2014, OXYS announced the signing of a definitive merger agreement with privately-held Estill Medical Technologies, a Texas-based developer and marketer of the FDA-cleared "Thermal Angel Blood and IV Fluid Infusion Warmer". The transaction was treated as a reverse subsidiary merger and involved agreements among OXYS, OSI Acquisition, Inc., (a "Merger Sub"), Estill Medical Technologies, Inc. and its shareholders, and James T. Lopez, as agent and attorney-in-fact for the security holders. Pursuant to the completion of the transaction, Merger Sub will be merged with and into Estill (the "Merger"), with Estill surviving as a wholly owned subsidiary of OXYS. The Merger Agreement has been adopted and approved by the Boards of both OXYS and Estill and is subject to Estill Shareholder Approval. All due diligence has been completed, including the required financial audit of Estill by a PCAOB auditor. Further, all definitive agreements have been signed, including employment and escrow agreements. We note that one of the benefits of reverse subsidiary merger is that the transaction is not subject to approval by the stockholders of OXYS. The combined entity, OxySure Systems Inc., will continue to trade under the symbol "OXYS" on QTCQB.
Combined entity to generate $10mn in annual sales
The merger creates an emerging medical device company with strong roots in the emergency medical space. The companies' patented and life-saving technologies products are complementary, addressing critical needs in both first-responder and pre-responder markets, as well as the military. The combined company plans to be a platform company for additional product and market expansion, and this transaction is the first step towards achieving that goal.
The combined entity creates a shared and leveraged business platform, optimizing product development capabilities and sales and marketing networks. The combined entity is expected to generate initial annual revenues in excess of $10mn with ~$2-3mn annually in combined synergies, resulting in improved cash flows and a stronger balance sheet. Post merger, the addressable market for OXYS will be close to $1 billion annually ($400mn for OxySure Model 615 oxygen system and $600mn for Thermal Angel), with ~50% of this market opportunity in the U.S. alone.
The report is available here: OXYS Special Update Note. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will also be available on these platforms.
Please review important disclosures on our website at www.seethruequity.com.
About OxySure System, Inc.
OxySure Systems, Inc. (OXYS) is a medical technology company that focuses on the design, manufacture and distribution of specialty respiratory and medical solutions. The company pioneered a safe and easy to use solution to produce medically pure (USP) oxygen from inert powders. The company owns numerous issued patents and patents pending on this technology which makes the provision of emergency oxygen safer, more accessible and easier to use than traditional oxygen provision systems. OxySure's products improve access to emergency oxygen that affects the survival, recovery and safety of individuals in several areas of need: (1) Public and private places and settings where medical emergencies can occur; (2) Individuals at risk for cardiac, respiratory or general medical distress needing immediate help prior to emergency medical care arrival; and (3) Those requiring immediate protection and escape from exposure situations or oxygen-deficient situations in industrial, mining, military, or other "Immediately Dangerous to Life or Health" (IDLH) environments. www.OxySure.com
About Estill Medical, Inc.
Estill Medical Technologies, Inc. developed, markets and sells the Thermal Angel blood and intravenous fluid infusion warmer. The Thermal Angel is an FDA-cleared, battery powered, disposable, lightweight and portable device that is used to warm blood or IV fluid at the point of injury or stationary environments. The Thermal Angel fills the void in pre-hospital, hospital, EMS, Air Ambulance, military and government settings when an easy to use solution is required to infuse warmed fluids into a patient. The Thermal Angel combines the required features of a sterile fluid path with the intelligence of an advanced medical instrument creating a small, lightweight, disposable and portable fluid warmer that can follow a patient through the continuum of care. The Thermal Angel is the leading product procured by the U.S. Military. Estill holds three patents for the Thermal Angel in the U.S. as well as patents in other countries. For more information, please visit www.thermalangel.com.
About SeeThruEquity
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
For more information visit www.seethruequity.com.
Contact:
Ajay Tandon
SeeThruEquity
(646) 495-0939
SOURCE: SeeThruEquity
