TORONTO, ON / ACCESSWIRE / December 29, 2016 / CardioComm Solutions, Inc. (TSXV: EKG) ("CardioComm Solutions" or the "Company"), a global medical provider of consumer heart monitoring and medical electrocardiogram ("ECG") software solutions confirms that on December 28, 2016, it retired a $900,000 line of credit ("LOC") from MD Primer Inc. (the "Lender"). The Lender's LOC was set to mature on December 31, 2016.
CardioComm Solutions informed the market of its intent to meet its debt repayment obligation after the Lender confirmed in October of 2016 that the LOC would not be renewed. The Company closed a combination of $600,000 in debt financing and $500,000 in equity financing in order to retire the LOC. This coincided with a series of updates from the Company that included confirmation of a reorganized Board of Directors, engagement of specific firms to provide analyst support and investor relations services, significantly improved 2016 financials, the launch of a US-based sales force initiative, and an intention to introduce new wearable versions of its consumer and medical HeartCheck™ branded ECG devices. These devices will tap into the Smartphone-connected telemedicine, sports and mobile health monitoring markets in 2017.
Over the past few years, CardioComm Solutions completed an extensive corporate restructuring and a major software redesign which required access to a large LOC to finance both of these strategic investments. Subsequent to this, the Company implemented prudent financial controls with vendors and service providers and markedly reduced operating costs while developing a strong product roadmap and innovative device pipeline. CardioComm Solutions was able to accomplish the restructuring and redesign while maintaining revenue streams, market leadership and its global competitive advantage as a provider of consumer and medical ECG monitoring solutions. The Company strategically invested in the development and release of its flagship ECG management software, developed for hospital use, known as GEMS™ WIN, while also investing in its disruptive and innovative HeartCheck™ ECG devices and SMART Monitoring ECG reading service. These investments in technology are expected to provide the Company with a carry forward benefit to meet device and computer operating system requirements well beyond 2020, without the need for future software technology redevelopment.
Post-financing, CardioComm Solutions' long-term debt will total $600,000, a 40% reduction from the $1,000,000 previous LOC provided to the Company by the Lender three years earlier. This smaller debt obligation will provide the Company with an easier pathway to debt retirement over the next two years.
As CardioComm Solutions enters 2017, it will continue developing connectivity solutions and ramping up co-marketing strategies with ECG hardware technology providers. These solutions and strategies are expected to yield new/additional Smartphone-connected and wireless devices under the HeartCheck™ brand, open new sales and marketing channels globally and generate expanded applications for the fee-for-service-based SMART Monitoring ECG reading service.
CardioComm Solutions has earned the ISO 13485 certification, is HPB approved, HIPAA compliant and holds clearances for the sale of its HeartCheck™ technologies from the European Union (CE Mark), Australia (TGA), the USA (FDA), China (CFDA) and Canada (Health Canada). To learn more about the CardioComm Solutions' products, please see the Company's websites www.theheartcheck.com and www.cardiocommsolutions.com.
About CardioComm Solutions
CardioComm Solutions' patented and proprietary technology is used in products for recording, viewing, analyzing and storing electrocardiograms for the 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. CardioComm Solutions is headquartered in Toronto, Ontario, Canada.
FOR FURTHER INFORMATION PLEASE CONTACT:
Etienne Grima, Chief Executive Officer
1-877-977-9425 x 227
investor.relations@cardiocommsolutions.com
www.cardiocommsolutions.com
Forward-looking statements
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.
SOURCE: CardioComm Solutions
ReleaseID: 451963
