Advanced Medical Institute Inc. (OTCBB:AVMD) (AMI), a leading provider
of treatment for Erectile Dysfunction and Premature Ejaculation in
Australia and New Zealand, has announced that its wholly owned
subsidiary AMI Australia Holdings Pty Limited (AMI Australia) has sold
its 50% interest in Whygo Videoconferencing Pty Limited, a privately
owned Australian company (“Whygo”)
in exchange for the payment of A$330,000 (approximately US$305,000) to
Mr. James Matthews.
Whygo and its subsidiaries conduct a video conferencing business in
Australia and Europe and AMI Australia’s
shareholding in Whygo was not considered significant to AMI Australia’s
operations. The purchaser, Mr. Matthews, held a 50% interest in Whygo
prior to the transaction.
The carrying value of this entity in the Company’s
books of this asset was lower than the sale price and the difference in
carrying value and it is expected that the sale price will be booked as
a gain in the Company’s accounts in the June
quarter.
Under the agreement, A$130,000 was paid on signing with a further
A$100,000 payable by no later than December 15, 2008 and the final
payment of A$100,000 payable by June 30, 2009.
The initial cash proceeds of the sale have been applied to reduce AMI
Australia’s secured loan from ANZ Nominees
Limited. The total principal amount due to ANZ Nominees has now been
reduced to approximately A$2.098 million .
“We are delighted with the Company’s
strong performance so far this quarter. We are also pleased that the
Company has been able to substantially reduce its outstanding secured
loan with ANZ Nominees by disposing of a non-essential asset at a profit
and hope to have further news for the Company’s
shareholders in the near future,” said Dr.
Jacov Vaisman, founder, president, CEO and chairman of the board of AVMD.
About AMI
Advanced Medical Institute Inc., (OTCBB:AVMD), headquartered in Sydney,
Australia, is a leading provider of treatment programs for erectile
dysfunction and premature ejaculation in Australia and New Zealand. The
Company operates more than 20 facilities in Australasia, China and
Japan. AVMD has more than 280 employees, including 48 medical personnel
and, since its inception, has provided treatment to more than 300,000
customers. Advanced Medical Institute and its predecessor companies
began arranging treatment programs for Premature Ejaculation and
Erectile Dysfunction patients in 1993. For more information, visit the
company’s website at: http://www.avmd.com.au.
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward- looking statements are based on current expectations or
beliefs, including, but not limited to, statements concerning the
company's operations and financial performance and condition. For this
purpose, statements that are not statements of historical fact may be
deemed to be forward-looking statements. The company cautions that these
statements by their nature involve risks and uncertainties, and actual
results may differ materially depending on a variety of important
factors, including, among others, the impact of competitive products and
pricing; changes in consumer preferences and tastes or perceptions of
health-related issues; effectiveness of advertising or market-spending
programs; changes in laws and regulations; fluctuations in costs of
production, foreign exchange and interest rates; and other factors as
those discussed in the Company's reports filed with the Securities and
Exchange Commission from time to time.
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