LOS ANGELES, May 11, 2011 /PRNewswire/ -- Instacare Corp. (OTCQB: ISCR), the exclusive provider of the Shasta Genstrip, a revolutionary diagnostic product targeted at the $20 billion diabetes care marketplace, a leading provider of prescription diagnostics and home testing products for the chronically ill, and a leading developer of revolutionary cell phone centric e-health products and technologies, today announced that its Board of Directors has met regarding the 2nd confidential proposal received from the NASDAQ traded company (the "Company") recently mentioned in a Press Release, and has for the second time rejected the Merger Offer as inadequate in providing fair value to Instacare shareholders.
The Board of Directors of Instacare Corp. did find more merit in the latest proposal and thus asked Chairman Robert Jagunich to prepare a counter proposal on behalf of the Board. Mr. Jagunich has completed the counter offer and sent it to the Company.
Keith Berman, CFO and Secretary of Instacare Corp. commented, "Although the current merger proposal offers Instacare shareholders more value and better terms than the first offer, and although this latest proposal offers a substantial premium to the company's current share price, it is the Board's belief that, based on the Walling reports of January 24 and March 2 and Walling's update expected prior to May 20, the company offers more value to its shareholders, by remaining independent."
Mr. Berman continued, "Given the near term release of Genstrip and an advertising and branding campaign slated to begin this month, as well as discussions we are in with other companies, Instacare intends to engage an investment bank to evaluate all offers and explore possible strategic alternatives."