Dividend and Conquer, Medisafe 1 Technologies Doubles (MFTH)

WallSteetPR has covered Medisafe 1 Technologies (OTC: MFTH) before today. Looking at today’s numbers, it is quite clear that people remain afraid of needles. People also fear being accidentally administered drugs intended for another patient, an incorrect dosage, or simple incompetence as well of a host of other problems that hospitals fight each time a patient requires a needle-delivered medication.

The numbers are truly shocking. It is these common mistakes that gave birth to Medisafe 1 Technologies. Medisafe has developed a syringe locking system that requires medical practitioners to scan the needle through a bar code reader in order for the syringe to physically function. In theory, if adopted by hospitals worldwide, its products will save tens of thousands of lives each year.

T0day’s gain, however, was solely based on Medisafe’s intention to offer shareholders a one-time dividend of $0.01 for each share held by investors. Given that Medisafe’s stock began the day at $0.0022, it’s no surprise that this surprise announcement drove the stock up over 120% on the day. It closed at $0.0040, well below the anticipated dividend of $0.01. Trading was heavy with over 1.1 million shares changing hands. It’s difficult to think that the shares will not continue to gain further this week as investors are essentially guaranteed free stock if the price remains below this $0.01 threshold.

This dividend hinges on a $7 million perpetual license sale to an unidentified buyer. Presently, the deal simply awaits the completion of due diligence by this buyer. When the deal was announced on August 30, 2012, Medisafe suggested the deal would be completed within 60 days. Today’s announcement suggested that it would now be completed within the next 30 days.

“Upon the anticipated completion of this non-exclusive perpetual license agreement, we will be extremely pleased to be able to reward our shareholders with this special dividend,” said Jacob Elhadad, CEO of Medisafe 1 Technologies Corp. “Similarly, we intend to continue to update our shareholders with further information following the sale’s closing.”

These are clearly the words of a confident executive.

The numbers don’t lie and Medisafe is clearly concerned for your safety with its patented syringes. The following is a list of studies published by various sources in the last two years:

• 42% of people believed they had personally experienced a medical mistake (NPSF survey).
• 44,000 to 98,000 deaths annually from medical errors (Institute of Medicine).
• 225,000 deaths annually from medical errors including 106,000 deaths due to “nonerror adverse events of medications” (Starfield).
• 180,000 deaths annually from medication errors and adverse reactions (Holland).
• 7,391 deaths resulted from medication errors (Institute of Medicine).
• 2.4% to 3.6% of hospital admissions were due to (prescription) medication events (Australian study).

In addition to today’s announcement of the expected dividend, a number of Tweets alerted investors to the situation with Medisafe. California Penny Stock, Penny Stock Zoo, and Stock Market Alerts each took to Twitter multiple times to drum up Medisafe interest.

While no guarantee, Medisafe should continue to rise this week in anticipation of this dividend and the completion of this licensing sale.