TORONTO, ONTARIO / ACCESSWIRE / May 9, 2014 / CardioComm Solutions, Inc. (TSX VENTURE:EKG) ("CardioComm Solutions" or the "Company") today announced that it has amended its GEMS(TM)software license agreement ("SLA") with MD Primer Inc. ("MDP"), which was previously described by the Company in its press releases on January 22, 2014, and February 20, 2014.
Pursuant to the amending agreement, the second payment milestone by MDP to the Company has been modified to reflect the GEMS(TM) WIN software release schedule of CardioComm Solutions. Accordingly, the SLA now associates the second $150,000 milestone payment with the commercial release of GEMS(TM) WIN and the third and final $100,000 milestone payment with the commercial release of a GEMSTM 4.0 software upgrade. The SLA allows the Company to complete GEMS(TM) WIN within the next six months if required; however, the Company has recently announced an expected GEMS(TM) WIN release in the first week of June 2014. The SLA also allows the Company a further 18 month period to complete the GEMSTM 4.0 commercial release.
"The replacement of the XP operating system to Windows 7 by Microsoft has been a disruptive and expensive challenge for many and necessitated a reprioritization of work by our development team. In early 2014, we responded to requests from our clients to help minimize, where possible, their need for additional investments of time and finances for staff to be trained on any new WIN 7 based ECG management software purchase. Accordingly, we postponed our April GEMS(TM) 4.0 release in favour of releasing GEMS(TM) WIN, a GEMS (TM) upgrade with Windows 7 compatibility that provides the familiarity and traditional stability of GEMSTM 3 that our customer base was already comfortable with. GEMS(TM) WIN will also enable customers to continue to benefit from the use of our HL7, AutoAttendant and GEMS(TM) Air modules," stated Etienne Grima, CEO of CardioComm Solutions. "In order to also meet our obligations to MDP, we have now added the provision of GEMS(TM) WIN to our software license agreement so that MDP may have a solution available until GEMSTM 4.0 is released. Indeed, work on GEMSTM 4.0 has already been re-engaged given the imminent release of GEMS(TM) WIN."
The amended SLA states that should CardioComm Solutions elect not to complete GEMSTM WIN or GEMSTM 4.0, MDP will be permitted to acquire the unfinished software works without restrictions and the Company's right to repurchase the software license pursuant to the terms of the SLA will be terminated.
"Modifying the software license agreement was a responsible response to enable MDP to have an ECG software solution available as originally contemplated in the agreement. GEMSTM WIN will be released in the next few weeks with a first release of GEMSTM 4.0 expected in the ensuing few months," said Mr. Simi Grosman, member of the Company's Board of Directors.
About CardioComm Solutions
CardioComm Solutions' patented and proprietary technology is used in products for recording, viewing, analyzing and storing electrocardiograms (ECGs) for diagnosis and management of cardiac patients. Products are sold worldwide through a combination of an external distribution network and a North American-based sales team. The Company has earned the ISO 13485 certification, is HPB approved, HIPAA compliant, and has received FDA market clearance for its software devices. CardioComm Solutions is headquartered in Toronto, Ontario, Canada, with offices in Victoria, B.C.
FOR FURTHER INFORMATION PLEASE CONTACT:
Etienne Grima, Chief Executive Officer
1-877-977-9425 x 227
Forward-looking statements
This release may contain certain forward-looking statements and forward looking information with respect to the financial condition, results of operations and business of CardioComm Solutions and certain of the plans and objectives of CardioComm Solutions with respect to these items. Such statements and information reflect management's current beliefs and are based on information currently available to management. By their nature, forward-looking statements and forward-looking information involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements and forward-looking information.
In evaluating these statements, readers should: specifically consider risks discussed under the heading "Risk Factors" in the Company's Annual Information Form, available at www.sedar.com; not to place undue reliance on forward-looking statements and forward-looking information; be aware the Company does not assume any obligation to update the forward-looking statements and forward-looking information contained in this Annual Information Form other than as required by applicable laws, including without limitation Section 5.8(2) of National Instrument 51-102 (Continuous Disclosure Obligations).
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