TORONTO, Sept. 17, 2014 /CNW/ - Biosign Technologies Inc. (TSXV: BIO) ("Biosign" or the "Company") announces that it has completed the sale of its hardware division to Cloud DX Inc. ("Cloud DX"). On August 11, 2014, Biosign announced it had reached an agreement in principle to sell certain assets related to the Company's Pulsewave medical device product line ("the Agreement") with Vancouver-based Global Life Safety Group Inc. ("Global"). Cloud DX, a New York-based affiliate of Global, acquired the Pulsewave assets, intellectual property and certain other intangible assets, for a total purchase price of $2,000,000 to be paid over 5 years with minimum payments of $100,000 per year. Biosign was paid $25,000 on closing and an additional $80,000 is expected to be received from Cloud DX on or before October 15, 2014. Payments will be accelerated upon satisfaction of certain financing and other milestones achieved by Cloud DX. In addition, Cloud DX has assumed the operating costs of the Pulsewave division, including various real estate, physical plant, human capital, R&D and manufacturing expenses. As part of this transaction, Biosign has been granted distribution rights from Cloud DX as well as the ability to integrate Pulsewave and future related products with Biosign solutions.
Having divested itself of its hardware division, Biosign intends to solely focus on delivering healthcare IT solutions through its software divisions, including AioMed GmbH in Germany. By separating the hardware from its software business, management of Biosign believes that it has increased the likelihood of success for both enterprises. This change will enable Biosign to focus on developing and delivering its software solutions while retaining the ability to connect with hardware devices (including Pulsewave) and future related products. A separate hardware business may allow for alternative funding channels to be employed in ongoing device development which is capital intensive. This divestiture is not expected to materially decrease Biosign's revenue and significantly reduces operating expenses and capital expenditures going forward.
Biosign Chairman and interim CEO Michael Gross stated: "We are pleased to take this step to strengthen and focus Biosign on the high-margin and fast growing software divisions acquired over the past 18 months. As a company completely focused on software solutions, Biosign will now be able to better serve its growing client base in the home care, allied health and practice management sectors."
Biosign also announces that it has terminated its investment in Vancouver-based Higher Bracket Online Media Inc. ("Higher Bracket"). On March 5, 2014, the Company acquired from an arm's length vendor 25% of outstanding shares of Higher Bracket for a purchase price of $380,000, paid by the issuance of 6,000,000 common shares of the Company and a note payable in the principal amount of $80,000. Biosign and the vendor have effectively agreed to unwind the transaction with the cancellation of the note payable, the return of Higher Bracket shares held by Biosign and the return for cancellation of the Biosign shares held by Higher Bracket that were issued on closing to the vendor less 480,000 shares, which will be retained by the vendor as consideration for the termination of such arrangements.
Biosign management is continuing its efforts to secure additional debt and equity funding for the Company's short and long-term obligations. In addition, Biosign management is continuing to pursue opportunities to reduce expenses and capital requirements as part its efforts to improve its financial position and these opportunities may include further asset sales. While the Company is striving to achieve its financing plans, there is no assurance that future funding will be available at favourable terms, or at all.
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).
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: Biosign Technologies Inc.
For further information: Biosign Contact Information: Michael Gross, Interim CEO and Chairman, Biosign Technologies, Phone: (416) 218-9800 ext. 201, Email: email@example.com