$ 5 million india telemedcare subscription

IMMEDIATE RELEASE
TELEMEDCARE LOI ? INDIA
$5 MILLION ? LOI STIRLING SUBSCRIPTION
9 May 2011
Healthcare group, Stirling Products Limited (ASX:STI) advises the Company has received
and agreed to the terms of a CONDITIONAL Letter of Intent (LOI) for the first of a
number of global TeleMedCare licensing agreements that provides for:
The exclusive TELEMEDCARE rights for India to be granted to a special purpose company
to be incorporated and publicly listed in India. The existing shareholders of TeleMedCare
are to receive a 40% interest in this company on establishment which is to be non dilutive for
the first AUD$3 million raised and from thereon will be proportionately diluted with respect
to any further capital raised.
Further, the Company is advised that a number of the proposed Indian subscribers to the
TeleMedCare special purpose Indian company are also desirous of investing in Stirling
Products in order to get direct exposure to the global TeleMedCare and High Density Aerosol
(HDA) pulmonary drug delivery opportunity. The LOI has therefore conditionally provided
for a subscription to the issue of a total 880 million shares in Stirling Products in
consideration of the payment of AUD$5 million (an average of $0.0056 per share).
The LOI is conditional upon:
1. The Company obtaining shareholder approval for the issue of 880 million shares in
consideration of AUD$5 million prior to 30 June 2011.
2. The entering into of binding agreements in India by participating Indian subscribers.
3. The entering into of the exclusive licensing agreement between TeleMedCare and the
Indian Licensee.
4. Assurance of delivery of 174 TeleMedCare vital signs monitoring devices being
delivered to the Indian Licensee along all necessary support and training at no added
charge ? The Company values this at AUD$870,000.
5. The parties to the LOI obtaining all required or necessary approvals and consents in
respect to the contemplated transactions, including but not limited to the consent and
approval of all governmental, local and other authorities in India for the use of the
TeleMedCare Clinical System in India.
6. The closing of the transaction be no later than 30 days following the approval by
Stirling Products shareholders of the resolutions that will be required to be passed in
order for the contemplated transaction to proceed.
The Company proposes to immediately arrange for the convening of an Extraordinary
Shareholders Meeting, that the LOI provides, must be held prior to 30 June 2011, in order for
the Company?s Shareholders to consider the resolutions that will be required for the LOI to
proceed, along with a number of further resolutions in respect to the Company?s affairs.
The Company does advise that the LOI is CONDITIONAL and that the Company will be
required to gain approval from its shareholders and until such time as all conditions precedent
are satisfied the transaction proposed will remain CONDITIONAL
For further information see www.stirlingproducts.net or contact:
Peter Boonen
Managing Director
Stirling Products Limited
Ph: +61 2 9299 9270
E: [email protected]
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