Great calculation from "Sterling" on other board...!!!

MDFI**Converts $4M Debt to Equity…

MDFI has been strengthening their financials by filing with the SEC that their negative Free Cash Flow for its quarter ended June 30, 2009 was $(38,049), a 93% improvement over the year earlier same quarter when Medefile International generated $(555,586) in negative Free Cash Flow. Medefile International has generated fourteen consecutive quarters of negative Free Cash Flow. Free Cash Flow for the most recent quarter also reached a four year high.

http://finance.paidcontent.org/freelunch...

That 93% improvement is setting the stage for some very nice growth. I think what jumpstarted this growth was the Debt Conversion below:

MedeFile Materially Strengthens Balance Sheet Through Equity Financing and Debt Conversion Totaling $4 Million

http://www.bio-medicine.org/medicine-new...

MDFI received $1.95 Million in Net Cash Proceeds from three separate private placement transactions of restricted stock and warrants and converted $2.1 Million of Debt into Equity.



Conversion Valuation from Private Placements #1 & #2:
$1.79 million for 11.9 million restricted shares of common stock. Below is the Conversion Valuation of this Debt to Equity Conversion:

$1,790,000 ÷ 11,900,000 shares = .15 MDFI Share Conversion Valuation/Worth



Conversion Valuation from Private Placement #3:
$160,000 in gross proceeds from the private placement of 1.1 million restricted shares of common stock. Below is the Conversion Valuation of this Debt to Equity Conversion:

$160,000 ÷ 1,100,000 shares = .145 MDFI Share Conversion Valuation/Worth



MDFI reported in a previous filing that the Company's largest stockholder and primary creditor has converted $2.1 million in debt into 14 million restricted shares of Medefile's common stock, thereby reducing the Company's indebtedness to the stockholder from approximately $3.04 million to approximately $940,000. Below is the Conversion Valuation of this Debt to Equity Conversion:

$2,100,000 ÷ 14,000,000 shares = .15 MDFI Share Conversion Valuation/Worth



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