MONTREAL, Feb. 17 /CNW Telbec/ - Sonomax Hearing Healthcare Inc. (TSX
Venture: SHH) announces that it has made the decision to transition to a
pure-play Product Development and Licensing company. This decision is based on
the Company's successful execution of the recently-announced software rights
deal and in light of similar opportunities that have presented themselves and
are now in negotiation. This adjustment of strategic focus dictates several
important structural changes at the Company.
First, after analyzing the business facts, Mr. Dan Casey, the Company's
Chief Executive Officer, has concluded that given the fiscal and operational
controls he has set in place and the Company's limited cash, resigning from
his executive post is in the best interests of Sonomax. This will
significantly alleviate the impact on the Company's working capital of his
remuneration and other material costs associated with the business model prior
to this adjustment.
"Dan has set the stage for Sonomax to live up to its commercial potential
with over a year of hard work", said Mr. Nick Laperle, Sonomax's President and
co-founder. "In this short period, he has implemented fiscal and operational
controls company-wide and slashed our burn rate by making tough, intelligent,
decisions. He has directed the R&D group to where substantially-reduced
product costs and a significantly-simplified fitting process are in sight, and
has successfully concluded our first licensing deal. Dan has shown us how, and
has left us with a clean and effective platform from which to exploit the
business opportunities presently at hand. His decision to leave us, I'm sure,
was a difficult one for him, but is characteristic of his principled way of
doing business, and his no-nonsense approach to management."
Mr. Casey said, "Although this was a very difficult personal decision, it
was appropriate in light of the Company's plans. I am happy to continue to
help the team out in any way I can."
Going forward, long-term board member Mr. Peter Malouf will take over the
position of Chairman of the Board of Directors, replacing Mr. Barry Schwartz,
the current non-executive Chairman.
Mr. Zygmunt Marcinski, C.A., a Sonomax director, will become CEO,
replacing Mr. Casey. Mr. Marcinski's monetary remuneration from Sonomax will
be modest, with opportunity for upside through success-based stock option
grants. He will direct and give guidance to an Operations Committee comprised
of senior executives of the Company. Said Mr. Barry Schwartz, outgoing
Chairman, "Given his wealth of experience, his history as an active Board
member of Sonomax, and his widely-known business acumen, it will not take long
for Zyg to learn the granular issues of the Company and exploit its strengths
and the opportunities that are in place, to the benefit of all stakeholders."
Current Board member Mr. Peter Brennan, MBA, CFA, has agreed to expand
his already extensive activities in assisting Sonomax. He will carry out the
duties of Co-Chairman of the Board of Directors and play an integral role in
the management and guidance of the Sonomax Operating Committee, working in
collaboration with Mr. Marcinski, and lending his considerable complementary
skills when called upon.
In the context of this adjusted business focus, Sonomax has made
additional material cuts in order to reduce its operating expenses and extend
its runway. In this regard, Sonomax has cut its head count by a further six
people, and reduced payroll expenditure through the creation of a deferral
salary program under which the members of the Sonomax Operations Committee
will defer a significant portion of their salaries for the foreseeable future.
Consistent with the Sonomax model going forward, the Company is in the
final stages of establishing a comprehensive program that will allow
industrial licensees to work self-sufficiently; otherwise stated, in a context
that will not be a drain on Sonomax's financial and human resources. Specific
tenets of the program include, but are not limited to, product and packaging
upgrades, written templates and strategies for business development and sales
funnel management, a new website that will serve as a comprehensive resource
in the selling and support exercise, interactive business portal, and improved
product specification sheets.
Sonomax is also pleased to announce that it has appointed Michael Blank,
C.A. as Chief Financial Officer. Mr. Blank will receive 200,000 options at
Sonomax Hearing Healthcare Inc. is a leader in the development and
licensing of intra-ear technologies. The company's patented instant
custom-fit, expansion earpieces deliver the most comfortable sound enhancing
earpieces in the world. This unique technology enables a wide range of
applications such as for smart digital hearing protectors, affordable hearing
aids, and military, first responder, and tactical use, as well as in the
important cellphone communication and music markets.
This news release contains certain forward-looking statements that
reflect the current views and/or expectations of Sonomax Hearing Healthcare
Inc. with respect to its performance, business and future events. Such
statements are subject to a number of risks, uncertainties and assumptions.
Actual results and events may vary significantly. The TSX Venture Exchange has
not reviewed and does not accept responsibility for the adequacy or accuracy
of this release.
For further information:
For further information: Nick Laperle, President, (514) 932-2674 ext
2229, (877) 766-6629 ext 2229, email@example.com