Shares of Medical Care Technologies Inc. (OTC: MDCE)
, a Beijing, China-based company engaged in the development of a network of children’s health facilities in the larger urban areas throughout China, surged in trading today after the company announced that it received a reserve equity financing of $10 million over a term of 4 years.
MDCE received the $10 million financing from AGS Capital Group LLC, a provider of flexible equity financing solutions for growth-stage and mid-cap public companies as well as private companies looking to go public.
Medical Care Technologies said that the financing will not put undue stress on its capital structure and is an inexpensive and flexible strategy in which the company controls the amount of any advance and its timing.
Luis Kuo, COO of Medical Care Technologies, said that MDCE believes the funding will provide it with the flexibility needed to expand its business. Kuo further said that as the demand in China to implement MDCE’s business model and to expand children’s health centers to other locations has been overwhelming, securing the right financing will give the company the ability to manage its long-term growth and shareholder value.
According to Ning Wu, CEO of Medical Care Technologies, the financing will allow MDCE to grow, concentrating its efforts, building and staffing of children’s health centers without the constant pressure of financing. Wu said that it took research and many months to come to what he believes will turn the tides for MDCE.
AGS Capital’s Chief Investment Officer, Allen Silberstein, believes that there is a tremendous market in China for the services that Medical Care Technologies provides. Silberstein sees significant growth for MDCR during the next year.
MDCE shares rose 212.50% to finish the day at $0.0025 on above average volume of 188.69 million.