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TORONTO, ONTARIO – CardioComm Solutions, Inc. (TSX VENTURE: EKG) (“CardioComm” or the “Company”), a leading global medical provider of consumer heart monitoring and electrocardiogram (“ECG”) acquisition and management software solutions,
is pleased to announce that it has entered into a revolving line-of-credit loan agreement dated as
of December 18, 2021, representing additional available funding as needed of up to $230,000. The terms of
the loan require that any borrowed amounts be repaid by the Company, along with interest at 8% per year,
by no later than December 18, 2023. The loan is secured against the assets of the Company.
The Company has the right to repay any loan amounts outstanding at any time, in whole or in installments,
without penalty. In addition, the lender may elect to convert the loan into common shares of the Company at
a price per share equal to the “discounted market price” under the policies of the TSX Venture Exchange. Any
conversion of debt into shares will be subject to applicable securities laws and approval of the TSX Venture
Exchange.
The Company also announces the proposed issuance of shares for debt. Under debt settlement agreements,
the Company will issue an aggregate of 463,740 common shares of the Company (“Shares”) to certain
directors, a former director and a former officer of the Company at a deemed price of $0.05 per Share. The
Shares will be provided to settle debt for services provided to the Company and will be subject to a four month
hold period in accordance with applicable securities laws. The issuance of the Shares is subject to receipt of
approval from the TSX Venture Exchange.
The Company also granted 62,500 stock options to a director of the Company, each option exercisable at
$0.05 per Share for five years from the date of grant and vesting immediately. The options are subject to the
provisions of the Company’s Stock Option Plan, the policies of the TSX Venture Exchange and applicable
securities laws.
Directors of the Company participated in the debt settlement and a director of the Company received stock
options, each of which is considered to be a “related party transaction” as defined under Multilateral
Instrument 61-101 (“MI 61-101“). Each transaction is exempt from the formal valuation and minority
shareholder approval requirements of MI 61-101 as the fair market value of each transaction does not exceed
25% of the market capitalization of the Company, as determined in accordance with MI 61-101.
To learn more about CardioComm’s products and for further updates regarding HeartCheck™ ECG device integrations, please visit the Company’s websites at
www.cardiocommsolutions.com and www.theheartcheck.com.
