TORONTO, ONTARIO - CardioComm Solutions, Inc. (TSX VENTURE:EKG) ("CardioComm Solutions" or the "Company") announced today it had closed the first tranche of its previously announced private placement equity financing. Under the financing, the Company issued $1,622,222 units at a price of $0.0675 per unit, for gross proceeds of $109,500. Each unit was comprised of one common share of the Company and one common share purchase warrant exercisable for two years for an additional share at a price of $0.10. For further information regarding the financing, please see the Company's press release that was issued on January 9, 2014. The gross proceeds from the financing will be used for general working capital of the Company. The shares and warrants issued by the Company are subject to a four month hold period which expires on May 21, 2014. The Company also confirmed that it will continue its current private placement equity financing offer.
In a CEO update released January 16, 2014, the Company stated that the potential exists that the share price offering of a 25 percent discount to a nine cent market price may need to be re-priced with no advanced notice. CardioComm Solutions has a track record of publishing press releases on a regular basis and at times on a weekly basis. Following a Company press release, should the open market price of the Company's stock reach or exceed 9.5 cents, the Company would need to re-price the private placement offering accordingly.
"We are optimistic on the performance of CardioComm Solutions and our go to market plans for the consumer HeartCheck(TM) and professional healthcare based GEMS(TM) technologies, products and ECG services in 2014. As we cannot determine what the market may do with respect to stock price during the period of time of our private placement equity financing offer, we have elected to close this first tranche of financing to secure the share price for those accredited investors who have committed early to the private placement opportunity for shares provided at a discount to the market," said Etienne Grima, CEO of CardioComm Solutions. "We wish to advise our shareholders that any share price offering may not be possible to maintain for an extended period of time should we release news on the Company's business activities."
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
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).
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.