TORONTO, Jan. 5, 2015 /CNW/ - Biosign Technologies Inc. (TSXV: BIO) ("Biosign" or the "Company") announces that the demand loans payable to Quindell Solutions Inc. ("Quindell") totalling $6.8 million plus all accrued interest of circa $180,000 ("Accrued Interest") have been converted to a loan repayable over a period of 5 years ("Term Loan"). The Term Loan accrues interest at the rate of 2% per annum above prime rate.
The first payment of $1,360,000 together with interest is due in December 2015 and subsequent payments of $680,000 together with interest are due every six (6) months thereafter. The final payment in December 2019 will also include the Accrued Interest.
The Term loan is unsecured and IBL-Internet Business Logic Inc. ("IBL"), a corporation wholly owned by Biosign, has been designated as Guarantor.
Under the Term loan agreement, Biosign and Guarantor, jointly and severally cannot encumber, sell, assign, lease or transfer any assets which has a monetary value of more than $3,400,000 or cause the value of any remaining unencumbered assets to be less than the amount of the Term Loan plus any accrued interest. In addition, the Term Loan will become due and payable if Biosign:
- Becomes insolvent
- Completes financing in excess of $15 million
- Suspends or ceases to carry on all or a substantial part of its business
- Pays any dividends to its shareholders
- Acquires any assets or business without the prior approval by Quindell
Biosign CEO Michael Gross stated: "We are pleased to finalize the restructure of these demand loans which will allow Biosign greater flexibility in securing additional funding required to support Biosign operations."
Management is continuing its efforts to secure additional funding for the Company's short and long-term obligations. The financing alternatives include debt and/or equity financings and asset sales. While the Company is striving to achieve its financing plans, there is no assurance that future funding will be available on favourable terms to the Company, or at all.
About Quindell Solutions Inc.
Quindell Solutions Inc. is a corporation incorporated under the laws of the province of Ontario, Canada and is a wholly-owned subsidiary of Quindell PLC which is a large, UK publicly-traded provider of Professional Services and Digital Solutions.
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 centered 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, Acting CEO and Chairman, Biosign Technologies, Phone: (416) 218-9800 ext. 201, Email: [email protected]