NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
CINCINNATI, June 26, 2019 (GLOBE NEWSWIRE) -- Protech Home Medical Corp. (“Protech” or the “Company”) (TSXV: PTQ), a healthcare services company with operations in the United States, is pleased to report an update related to the cyberscam breach that the Company previously disclosed in a press release dated May 6, 2019. Protech is delighted to report that it has obtained default judgment against the perpetrator of its previously announced cyberscam.
As a result of the proficient work and swift response of Company management and its global legal advisors, DLA Piper, the Company has successfully applied to the Hong Kong Court to freeze the perpetrator’s bank account in Hong Kong which contained approximately CAD$8.6 million of the CAD$9.2 million that was stolen. Earlier today, the Company obtained default judgment against the perpetrator, which is the first step in commencing enforcement and garnishee proceedings. It is expected that the bank will release the CAD$8.6 million to the Company as the Judgment Creditor upon receipt of a final Garnishee Order Absolute from the Court in Hong Kong. Garnishee proceedings are expected to take several months.
As a result of the Company’s investigations, it is understood that the balance of the stolen funds, namely, approximately CAD$608,000, was transferred by the perpetrator to a bank account of another party in mainland China. The Company continues to work with its advisors to report, trace and recover these funds, but are faced with a more challenging environment in mainland China.
“I am deeply gratified by the swift and effective response of our legal counsel, board of directors and executive team in this matter. We are very pleased with the latest developments as it relates to potentially recovering the money that was stolen from the Company and look forward to press releasing further news as it becomes available. Protech continued to operate at a high level of service throughout this crisis and we look forward to the full resumption of our growth by acquisition strategy. We thank all of our investors for supporting the Company in dealing with this unfortunate situation” said Greg Crawford, the Company’s CEO and Chairman.
While the Company is actively and aggressively taking all measures to recover the funds, there can be no assurance that one or more measures, including the garnishee proceedings, will result, or successfully conclude in a timely manner or at all. Additional information will be released by the Company as it becomes available.
ABOUT PROTECH HOME MEDICAL CORP.
The Company provides in-home monitoring and disease management services for patients in the United States healthcare market. The primary business objective of the Company is to create shareholder value by offering a broader range of services to patients in need of in-home monitoring and chronic disease management. The Company’s organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient’s services and making life easier for the patient.
Forward-Looking Statements
Certain statements contained in this press release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to the Company, including: Protech successfully recovering the funds; are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions, including, without limitation: the court proceedings related to the garnishment all being found in favour of the Company; and the Company meeting all of the notice and service requirements of the Hong Kong Court. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. Examples of such risk factors include, without limitation: credit; market (including equity, commodity, foreign exchange and interest rate); liquidity; operational (including technology and infrastructure); reputational; insurance; strategic; regulatory; legal; environmental; capital adequacy; the general business and economic conditions in the regions in which the Company operates; the ability of the Company to execute on key priorities, including the successful completion of acquisitions, business retention, and strategic plans and to attract, develop and retain key executives; difficulty integrating newly acquired businesses; the ability to implement business strategies and pursue business opportunities; low profit market segments; disruptions in or attacks (including cyber-attacks) on the Company's information technology, internet, network access or other voice or data communications systems or services; the evolution of various types of fraud or other criminal behavior to which the Company is exposed; the failure of third parties to comply with their obligations to the Company or its affiliates; the impact of new and changes to, or application of, current laws and regulations; decline of reimbursement rates; dependence on few payors; possible new drug discoveries; a novel business model; dependence on key suppliers; granting of permits and licenses in a highly regulated business; the overall difficult litigation environment, including in the U.S.; increased competition; changes in foreign currency rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the availability of funds and resources to pursue operations; critical accounting estimates and changes to accounting standards, policies, and methods used by the Company; and the occurrence of natural and unnatural catastrophic events and claims resulting from such events; as well as those risk factors discussed or referred to in the Company’s disclosure documents filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.
For further information please visit our website at www.protechhomemedical.com or contact:
Gregory Crawford
Chief Executive Officer
Protech Home Medical Corp.
859-300-6455
investorinfo@myphm.com
Media Enquiries:
PHM.communications@strategycorp.com
