Biosign sells 12.5% of MECK Medical GmbH to raise additional funds
TORONTO, Aug. 28, 2014 /CNW/ - Biosign Technologies Inc. (TSXV: BIO) ("Biosign" or the "Company") announced the completion of a Share Purchase Agreement (the "SPA") with 3282909 Nova Scotia Limited ("the Investor") under which it has sold 12.5% of its 51% ownership stake of the issued and outstanding shares of MECK Medical GmbH ("MECK") previously acquired on June 30, 2014. The Investor who paid $400,000 on closing for the stake in MECK is a corporation owned by Dr. Michael Gross who is Chairman and acting CEO of Biosign. The Investor has committed to pay an additional $75,000 subsequent to closing.
As part of the transaction, Biosign has a repurchase option from the Investor that can be exercised at its own discretion for up to 6.25% of the issued and outstanding shares of MECK for a period three years. Biosign retains its 51% control of MECK through a voting trust agreement.
MECK was recently renamed AioMed GmbH ("AioMed"). AioMed is a developer of innovative healthcare software solutions assembled into a cloud-based platform that provides facility management services, document management, prescription management, wound management and social networking services to the long term care, nursing home and extended care industries in Germany.
Biosign Chairman & acting CEO Michael Gross stated on behalf of the Board of Biosign: "We are pleased that Mr. Gross has taken this step to continue to improve the Company's financial position and allow Biosign to focus on its software strategy". Dr. Gross also stated that he is very pleased to be part of Biosign's new direction as a leading cloud based medical software company and that he is committed along with his executive team and employees to help transform Biosign into a Canadian success story.
Management is continuing its efforts to secure additional funding for the Company's short and long-term obligations. While the Company is striving to achieve its financing plans, there is no assurance that future funding will be available or at on favourable terms.
About Biosign Technologies Inc.
Biosign Technologies Inc. (TSXV: BIO) provides automated, software enabled health information solutions. The Company's various software divisions, including Clinicserver™ PencilThat™ EESI Corporate Benefits and AioMed GmbH offer industry-leading allied health clinic and patient centred care management solutions. For more information on Biosign, please visit www.biosign.com
This release contains forward-looking statements. Forward-looking statements, without limitation, may contain the words believes, expects, anticipates, estimates, intends, plans, or similar expressions. Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties and assumptions and Biosign's actual results could differ materially from those anticipated. Forward looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. In the context of any forward-looking information please refer to risk factors detailed in, as well as other information contained in the company's filings with Canadian securities regulators (www.sedar.com).
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SOURCE Biosign Technologies Inc.For further information: Michael Gross, Acting CEO and Chairman, Biosign Technologies, Phone: (416) 218-9800 ext. 201, Email: email@example.com