FOR: CARDIOCOMM SOLUTIONS, INC.
TSX VENTURE SYMBOL: EKG
The series of transactions will provide CardioComm Solutions with a recurrent and service-based royalty revenue stream
TORONTO, ONTARIO - CardioComm Solutions, Inc. (TSX VENTURE:EKG) (“CardioComm Solutions” or the “Company”) confirmed today that Toronto-based iMedical Innovations, Inc. (“IMED”) has finalized due diligence reviews and that the series of agreements involving custom software development and royalty license fees executed on September 15th are now binding and in effect. The Company previously announced the agreements and the October 17th deadline for the agreements to be deemed binding in a September 23rd press release.
Terms of the agreements include an immediate, non-refundable royalty advance to CardioComm Solutions of US$250,000 and a further US$650,000 in non-recurring engineering (“NRE”) fees associated with developing custom mobile cardiac telemetry (“MCT”) ECG management software (the “Software”) for exclusive use by IMED. The Software will be engineered to enable IMED and their GSM based, dry electrode, wearable ECG device (the “Device”) to enter into the US-based MCT ECG monitoring services market. Following the launch of the IMED MCT monitoring business, CardioComm Solutions will also be provided an ECG Royalty Fee equal to a US$20 ECG cardio-scan fee payable on a per-patient basis which aggregate royalty fee is not to be less than US$150,000 on an annual basis. In addition to an immediate infusion of cash into the Company and a recurrent revenue stream, IMED will retain CardioComm Solutions as their preferred software engineering consultants for future enhancements.
CardioComm Solutions will continue to work with their established network of ECG monitoring device/sensor manufacturers to provide device agnostic ECG software solutions. During the term of the agreements CardioComm Solutions will not engage with organizations interested in developing dry electrode, wearable and GSM-based ECG devices.
The Company had reviewed other service-based remote cardiac monitoring business relationships and identified this per ECG recurrent fee business model as most likely to gain traction in a market estimated to see 6 million users of remote patient monitoring in the USA by 2016 (MarketsandMarkets, 2013). Work on the custom Software will commence immediately with the intent to complete Software and Device FDA filings within the 2015 calendar year.
To learn more about the CardioComm Solutions’ software products please see the Company’s website www.cardiocommsolutions.com.
CardioComm Solutions' patented and proprietary
technology is used in products for recording,
viewing, analyzing and storing
electrocardiograms (ECGs) for diagnosis and
management of cardiac patients. Products
are sold worldwide through a combination of an
external distribution network and a North
American-based sales team. The Company has
earned the ISO 13485 certification, is HPB
approved, HIPAA compliant, and has received FDA
market clearance for its software devices.
CardioComm Solutions is headquartered in
Toronto, Canada, with offices in Victoria,
INFORMATION PLEASE CONTACT:
Etienne Grima, Chief Executive Officer
This release may contain certain forward-looking
statements and forward looking information with
respect to the financial condition, results of
operations and business of CardioComm Solutions
and certain of the plans and objectives of
CardioComm Solutions with respect to these
items. Such statements and information reflect
management's current beliefs and are based on
information currently available to management.
By their nature, forward-looking statements and
forward-looking information involve risk and
uncertainty because they relate to events and
depend on circumstances that will occur in the
future and there are many factors that could
cause actual results and developments to differ
materially from those expressed or implied by
these forward-looking statements and
In evaluating these statements, readers should:
specifically consider risks discussed under the
heading "Risk Factors" in the Company's Annual
Information Form, available at www.sedar.com;
not to place undue reliance on forward-looking
statements and forward-looking information; be
aware. the Company does not assume any
obligation to update the forward-looking
statements and forward-looking information
contained in this Annual Information Form other
than as required by applicable laws (including
without limitation Section 5.8(2) of National
Instrument 51-102 (Continuous Disclosure
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policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of