TORONTO, ONTARIO--(Marketwire - Nov. 7, 2012) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Attention: Business/Financial Editors
The Medipattern Corporation ("Medipattern" or the "Company") (TSX VENTURE:MKI), a healthcare leader in the development and commercialization of prevention and analysis solutions that positively impact people's lives, announced that it has arranged a term debt facility (the "Facility") to provide up to $1,000,000 of working capital. The Facility calls for advances to be made monthly to the Company, initially for $100,000, in exchange for secured notes to be issued by the Company under the Facility (the "Notes"). The Notes will mature on June 30, 2013, and will bear interest at the rate of 6% per annum, calculated monthly and payable at maturity. The Notes will be secured by a general security agreement over all the assets of the Company, in priority to all existing security interests granted by the Company. The closing of the Facility and the initial $100,000 monthly advance for Notes is subject to completion of definitive documents, and TSX Venture Exchange approval. The Notes are subject to certain redemption and repayment rights. Medipattern and its Board have agreed the holders of the Notes have the right to appoint up to two (2) representatives as directors to the Company's Board.
The proceeds from the Notes will be used by Medipattern to provide working capital in further support of its Visualize:Vascular™ sales efforts. The Company has determined that the initial results from its Visualize:Vascular trials merit a reallocation of resources towards the expansion of the program. In light of this development, the Company has recently implemented a comprehensive restructuring plan that reduces certain operating costs while increasing emphasis on Visualize:Vascular sales. Specifically, the US sales force and customer support forVisualize:Vascular have been increased. Sales of Visualize:Vascular are now targeted at the US medical market where the product is currently installed and being used in eight (8) states: New York, New Jersey, California, Pennsylvania, Connecticut, Massachusetts, North Carolina, and New Hampshire. Customers submitting medical claims for using Visualize:Vascular have been reimbursed by all of the major payers and in a recently reviewed paper, it was shown to be highly effective in determining luminal reduction correlating well with Magnetic Resonance Angiography (MRA). The Company will continue to pursue leads for its mHealth business unit in conjunction with its Visualize:Vascular efforts as it develops its physician prescribed model for its SmartCoach product.
All Notes issued under the Facility are subject to a four month and one day resale restriction and are subject to TSX Venture Exchange acceptance of requisite regulatory filings.
The securities offered in the placement have not been and will not be registered under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act"), and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.
About the Medipattern Corporation:
Medipattern® is an award-winning leader in the development and commercialization of healthcare solutions that positively impact people's lives through the prevention of disease and analysis of medical images and data. Medipattern's Knowledge-based Informatics (MKI) platform enables delivery of these streamlined solutions. Medipattern mHealth uses patented prevention technologies to engage, coach and monitor people in achieving their personalized goals. Medipattern iaHealth uses patented pattern recognition technology to analyze medical data to aid medical practitioners in the assessment of disease and critical anatomy. For more information, please visit the Company's website:www.medipattern.com.
Medipattern® is registered trademarks of The Medipattern Corporation. Visualize:Vascular™ is a registered trademark of Medipattern.
Forward-looking statements
This document contains forward-looking statements relating to Medipattern's performance, operations, or business environment. These statements are based on what we believe are reasonable assumptions given currently available information and our understanding of Medipattern's current activities. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential", and similar expressions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or control. A number of factors could cause actual outcomes and results to differ materially from those expressed in forward-looking statements. These factors include but are not limited to those set forth in the Company's corporate filings, (posted at www.sedar.com). These factors should be considered carefully, and readers should not place undue reliance on Medipattern's forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. The Company disclaims any intention or obligation to update or revise any forward-looking statements for any reason. Readers should not rely on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.