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Allezoe Medical Holdings (ALZM) Announces Settlement with Former Subsidiary; Renewed Focus on Acquisitions
BOCA RATON, FLORIDA, Jun 14, 2012 (MARKETWIRE via COMTEX) -- Allezoe Medical Holdings (OTCBB: ALZM) today announced that it has completed the resolution of all remaining matters with Organ Transport Systems, Inc. (OTS), its former subsidiary which it disposed of in February, 2012.

As previously announced, Allezoe entered into a Letter Agreement on May 1, 2012, with Healthcare of Today, Inc., Organ Transport Systems, Inc. and Heartland Capital Corporation as part of which Allezoe agreed to transfer and convey to Heartland all of Allezoe's interest in a guaranty and pledge agreement, pursuant to which Healthcare of Today, Inc. had pledged its ownership of the stock of OTS to secure (i) repayment of working capital advanced by Allezoe to OTS and (ii) the assumption by OTS of the obligation to pay $1,474,945.97 in accrued salaries due current and former officers or OTS, plus interest of $158,981.84 accrued as of February 29, 2012. On June 13, 2012, Allezoe and the other parties to the resolution closed on the transaction involved, as a result of which Allezoe has received repayment of $235,000 in working capital advanced to OTS; OTS has assumed the total debt owed to its former and current officers, plus all accrued interest; and Allezoe has received an indemnification and hold harmless from OTS of any liability on those amounts due. The OTS officers and directors each have consented and agreed to the assumption of the debt by OTS, and the total amount of the obligation, $1,474,946, plus all accrued interest, has been removed from the books of Allezoe.

As part of the settlement, Allezoe has executed a Mutual Release Agreement with OTS in which OTS has released and discharged Allezoe from any claims, demands, actions, causes of action and other liability arising out of or based upon the previous acquisition of control of OTS by Allezoe on or about July 16, 2011 and its operations thereafter, through February 29, 2012. Allezoe also has executed an amendment and modification of a Consulting Agreement previously entered into between Allezoe and Heartland on December 1, 2011, so that all amounts already paid to date to Heartland by Allezoe in common stock are agreed to be full satisfaction of all amounts otherwise due under that Consulting Agreement. As a result, Allezoe has no further obligations or liability under that Agreement.

In part as a result of the resolution of the OTS matters as noted above, Allezoe has refocused its efforts on the acquisition of companies which are compatible with its market focus and which can add immediate or near term revenues to its operations. According to Michael Gelmon, CEO of Allezoe: "The resolution of the lingering issues with OTS will now allow us to redirect our attention to growing the Company, through development of the existing HPV see and treat technology of our SureScreen Medical subsidiary, as well as to acquire new companies in our market space with promising technologies or existing revenue producing operations."

On May 18, 2012, we entered into a written letter of intent to acquire an existing medical device manufacturing and distribution company with a medical device product already in the market through multiple outlets. The letter of intent was subject to preparation and execution of a final definitive acquisition agreement and normal due diligence. Subsequent to the execution of the letter of intent and prior to the completion of a definitive acquisition agreement, the principal of the target company attempted to renegotiate the proposed acquisition, on terms which management of Allezoe concluded were not in the best interests of Allezoe or its shareholders, and, as a result, the letter of intent has been allowed to expire. There is no longer any effort being made to complete the proposed transaction, and there is no residual liability for the expired letter of intent.

Allezoe is again actively seeking new acquisitions to complement its existing operating subsidiaries, and the previously announced acquisition of BioCube, Inc., which is expected to close before the end of June. Allezoe has entered into discussions to acquire two identified additional target companies and hopes to enter into acquisition letters of intent in June.