FOR: CARDIOCOMM SOLUTIONS, INC.
TSX VENTURE SYMBOL: EKG
November 15, 2016
Use of HeartCheck™ device sales and long-term ECG monitoring services will increase physician reimbursements through established billing codes
TORONTO, ONTARIO - CardioComm Solutions, Inc. (TSX VENTURE:EKG) (“CardioComm Solutions” or the “Company”), a global medical provider of consumer heart monitoring and medical electrocardiogram (“ECG”) software solutions, today announced it has entered into a three year agreement for sales of the Company’s Global ECG Management Software (GEMS™ WIN), handheld HeartCheck™ ECG devices and SMART Monitoring ECG services into physician practices, pharmacies and hospital markets in the United States of America (“USA”).
The CardioComm Solutions’ USA sales program (the “Representative”) will utilize a network of channel partners and sales representatives that are already actively selling medical devices into the healthcare market. The CardioComm products have been identified as being of particular interest as there is a growing need for the introduction of reliable new and emerging ECG monitoring solutions to provide additional physician billing opportunities. Similar opportunities exist in the allied health markets, such as pharmacy banner groups, which will also be targeted by the Representative.
What is unique about CardioComm Solutions’ HeartCheck™ and GEMS™ WIN products is that all are cleared for sale and use as Class II medical devices in the USA. This allows for the CardioComm Solutions’ products to be used in reimbursable medical services by healthcare providers and health service organizations. Services supported include long-term ECG monitoring such as mobile cardiac telemetry, arrhythmia and prolonged QT interval screening/monitoring as an extention to in-hospital and in-clinic services as well as supporting long-term managed care support for people living with chronic medical conditions. Under the agreement, CardioComm Solutions will provide training of the Representative’s sales force and for supporting new customer installations.
Managed by a central sales manager, the Representative’s syndicate of channel partners will work towards annual revenue targets and be provided fees exclusively on a success basis. Fees will be provided under a standard commission structure as well as an inducement of share options. Under the inducement, the Representative will be provided 100,000 options for each $100,000 in NET revenue generated by the Representative for CardioComm Solutions. Each option will permit the Representative to purchase one common share of CardioComm Solutions at an exercise price equal to the closing market price of the Company’s shares on the date preceding the date of grant. All grants of stock options shall be subject to the terms and conditions of CardioComm Solutions stock option plan and compliance with the policies of the TSX Venture Exchange.
The Company believes this structure will achieve a higher commitment level for expanded sales opportunities with ongoing support of CardioComm Solutions’ products and technologies. The issuance of options will also provide a future strategic shareholder with a vested interest to grow progressively over the three year term of the agreement. Further, the Representative’s sales fees will only be based on the addition of new accounts.
To learn more about the CardioComm Solutions’ products please see the Company’s websites www.theheartcheck.com and www.cardiocommsolutions.com or contact the Company at firstname.lastname@example.org.
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, Ontario, Canada.
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 forward-looking information.
In evaluating these statements, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not assume any obligation to update the forward-looking statements and forward-looking information contained in this release other than as required by applicable laws, including without limitation Section 5.8(2) of National Instrument 51-102 (Continuous Disclosure Obligations).
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.