TORONTO, Oct. 16, 2012 /CNW/ - Biosign Technologies Inc. (TSXV: BIO) ("Biosign" or the "Company") is pleased to announce several important achievements as it proceeds with its restructuring plan.
NEW CANADIAN PHARMACY DISTRIBUTION
The Company has executed a Distribution and License Agreement with Denovo Medical Inc (Denovo), a Toronto-based distributor of Medical and Healthcare products to the Pharmacy and Large Employer sectors. This agreement replaces the exclusive Canadian master distributor agreement between Biosign and DLF Solutions Inc signed on June 28th, 2010. Under the new agreement Denovo will exclusively market Biosign products to the medical, pharmacy and large employer sectors in Canada. Exclusive rights to other Canadian sectors and the direct-to-consumer channel are now retained by Biosign. In consideration for this reduction in exclusivity, Denovo will receive 2,000,000 warrants to purchase Biosign common stock at a price of $0.10/share, and 500,000 warrants to purchase Biosign common stock at a price of $0.15/share, in both cases exercisable for a period of four years from the date of grant, subject to all necessary regulatory approval.
Denovo & Biosign will develop and market unique health information products based around the Biosign Health Station Kiosk and Health-On-The-Go portable kiosk products. During the month of October 2012, Biosign will join Denovo at three major tradeshows presenting to the pharmacy industry, in Toronto, Montreal and Calgary. Deployment of the Denovo-Biosign solution starting in the fourth quarter of 2012 is expected to coincide with an expansion of the Expanded Scope of Practice available to Pharmacists in Ontario. Our turnkey Health Kiosk solutions will enable pharmacists in Ontario to conduct detailed health checkups in a fast, easy, automated environment, driving traffic to their locations and increasing revenue. Our unique Health-On-The-Go mobile kiosk, accompanied by Biosign personnel in partnership with Denovo and their pharmacy clients, will offer onsite health checkups to the employees of organizations and large companies, and is expected to generate new sources of revenue for the sponsoring pharmacies.
Denovo President Christian Montini remarked: "We are pleased to renew this relationship with Biosign Technologies. Their Healthanywhere™ products are very innovative, and when we combine the Biosign Health Kiosk software with additional products and services from Denovo and our partners, we believe we have a compelling solution for Ontario pharmacies that plan to broaden their scope of practice, as well as a new way to reach large employer PPO groups. The available market for our combined products is substantial."
Biosign's CEO Robert Kaul stated: "This new agreement marks the beginning of an aggressive program to market our leading-edge Cloud Diagnostics™ (CloudDX) solutions, which include products that add value & drive revenue for multiple market sectors in both Canada and the USA. The relationships that Denovo have with some of the largest pharmacy and employer groups in Canada make them an excellent partner for Biosign."
REDUCTION IN DEBT OBLIGATIONS
Biosign has concluded a series of debt settlement agreements with various key trade creditors that will result in a reduction of approximately $269,000 (or 62%) in net debt obligations attributable to these creditors, from approximately $431,000 to approximately $162,000. Payment terms applicable to approximately $109,000 of the restructured debt obligations provide for monthly payments over 18 months commencing November 30, 2012 and balloon payments of approximately $54,500 on April 30, 2014 with all such payments bearing interest at 8% per annum. Payment terms applicable to $50,000 of the restructured debt obligations provide for interest free payments over a three-month period commencing October 29, 2012. In addition to this reduction in reported net debt obligations, Biosign also negotiated a release with another trade supplier and a 92% reduction of inventory purchase obligations from $218,000 to approximately $16,000 to be paid quarterly commencing in January 1, 2013.
Biosign recently unveiled a new look for the main Company website at www.biosign.com. In addition to a revised Home Page, the new website contains pages dedicated to describing the features and benefits of Biosign's "Cloud Diagnostics" products, new video product demonstrations and white papers specific to the Healthanywhere™ product line.
About Biosign Technologies Inc.
Biosign Technologies Inc. (TSXV: BIO) provides automated, computer enabled health information products. Key applications include the noninvasive monitoring of vital signs including blood pressure, pulse rate and breathing rate, enhanced with web services. The Company's Pulsewave™ medical device technology powers data collection for clinical decision support, self-care, wellness and disease management, while it's Healthanywhere™ software suite offers industry-leading remote patient monitoring solutions. For more information on Biosign, please visit www.biosign.com
About Denovo Medical Inc.
Denovo Medical Inc. offers business development and strategic marketing initiatives for unique first-to-market health and wellness products and services. Denovo's extensive sales and marketing experience with a key focus on community pharmacy partners ensures successful market penetration resulting in brand leadership.
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, Biosign'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:
Robert Kaul, CEO
Biosign Technologies Inc.
Phone: (416) 218-9800 ext. 234
Christian Montini, President
Denovo Medical Inc.
Phone: (416) 888-4180