August 23, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — ActiveCare, Inc. (OTCBB: ACAR), a biotelematic technology aimed at seniors, said it has received a capital raise commitment and undertaken a balance sheet restructuring.

The company said it has received a funding commitment from a European consortium of institutional investors that has agreed to invest up to $7.5 million into ActiveCare, at a price of $0.75 per share. It said that an immediate funding of $2.5 million will be received by the company within thirty days.

According to ActiveCare, future tranches will be available at the option of the company, dependent upon the achievement of certain milestones in the level of members using the company's products.

The commitment also requires that ActiveCare’s preferred shareholders convert their preferred shares into common stock at a price of $1 per share and that the warrants held by these shareholders be re-priced at $1 per share with no future re-sets.

As additional conditions to the commitment, the consortium will have the right to appoint two non-executive board members to ActiveCare's board of directors.

With the initial funding complete the company said it will have the capital necessary to perform on its business plan and fulfill orders for its products and services.

In addition, the arrangement with the preferred shareholders will eliminate a $2 million liability associated with a mandatory redemption provision imbedded in the Preferred Shares.

Through Utah-based ActiveCare's CareCenter, a member's medical data are stored, including doctors, medications and care providers.

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