Toronto, Ontario--(Newsfile Corp. - January 6, 2016) - CardioComm Solutions, Inc. (TSXV: EKG) ("CardioComm Solutions" or the "Company"), a global medical provider of consumer heart monitoring and medical electrocardiogram ("ECG") software solutions, today announced that it has entered a licensing agreement with China based Beijing Choice Electronic Co., Ltd ("BCET"). BCET is the original equipment manufacturer ("OEM") for the HeartCheck™ ECG devices and maintains a sales force for the promotion of their own branded ECG devices that are sold internationally.
Under the agreement, CardioComm Solutions will recognize BCET as an authorized representative of CardioComm Solutions for the promotion and licensing of GEMS™ Home based software to BCET customers who have purchased, or will purchase, certain BCET handheld devices. The MD100B and MD100E models are the first BCET devices to work with the GEMS™ Home software with options to add additional devices over the term of the agreement. BCET is restricted from selling devices that compete with the Company's HeartCheck™ ECG PEN. The agreement applies worldwide, except for China, which is expected to be managed at a future date under a separate agreement. The agreement will automatically renew annually following an initial three year term and will be subject to minimum BCET sales performance requirements.
BCET will now commence the co-marketing and use of GEMS™ Home, promoting it as an added value to enhance use of their devices. BCET has established sales channels through a distributor and 200 person sales force that covers almost 90 countries, expanding access to the CardioComm Solutions SMART Monitoring ECG service globally.
CardioComm Solutions is expected to benefit from expanded revenue opportunities realized from:
| | 1) | A per BCET device royalty payment for access to GEMS™ Home based on 5% of the net sale value of the first 5,000 devices sold, 3% on the next 15,000 devices sold and 2% on sales above 20,000 devices sold. |
| | 2) | A $10 USD GEMS™ Home activation fee charged to any BCET device owners who purchased a device prior 2015. |
| | 3) | A GEMS™ Home Rx annual licensing fee of $500 USD per download. |
| | 4) | SMART Monitoring ECG reading requests through GEMS™ Home at a rate of $12.50 USD for each physician ECG interpretation and $4.99 USD for each technician ECG triage. |
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BCET will benefit from a 10% commission paid from GEMS™ Home Rx annual licensing and net profits from the fee-based SMART Monitoring ECG service.
GEMS™ Home is a Windows-based software program that is available as a downloaded program from the CardioComm Solutions HeartCheck™ website at no cost with the purchase of a HeartCheck™ ECG device. GEMS™ Home Rx is a physician version of GEMS™ Home that utilizes the ECG viewing and reporting capabilities of the hospital-based CardioComm Solutions' GEMS™ WIN software. GEMS™ Home Rx is part of the Company's GEMS™ WIN line of products which is FDA cleared and Health Canada approved and is designed to work only with handheld ECG monitors such as the approved BCET and the Company's own HeartCheck™ ECG branded devices. Access to the SMART Monitoring service will be managed through the use of unique authentication codes paired to BCET device serial numbers issued by CardioComm Solutions for pre-paid activations.
This licensing agreement confirms the Company's efforts to develop an expanded global marketing and sales strategy through strategic partnerships and the addition of new ECG monitoring devices to its software and services technologies.
To learn more about the CardioComm Solutions' products please see the Company's websites www.theheartcheck.com and www.cardiocommsolutions.com or contact the Company at sales@cardiocommsolutions.com.
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 worldwidethrough 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Etienne Grima, Chief Executive Officer
1-877-977-9425 x 227
investorrelations@cardiocommsolutions.com
www.cardiocommsolutions.com
About BCET.
BCET was founded in 1993 and has grown into a leading enterprises in the global healthcare industry and one of the largest patient monitoring devices and pulse oximeter products manufacturers in China. Headquartered in Beijing, China, employing 600 people and with 8,000 square meters of manufacturing facilities certified under ISO13485 and QSR820 quality systems and a salesforces of over 200 people, BCET has sold its medical products into almost 90 countries around the world. With dozens of independent core research technologies, more than 140 patents and domestic and foreign registration in many areas globally including the USA, the European Union, Russia, Canada, BCET has extablished themselves in the fields of biomedicine, machinery electronics, communication technology, as well as computer science and other compound subjects and has become a leading supplier for top retailers in US and Europe. BCET also has a high sense of social responsibility with regard to public welfare in China and have donated medical equipment in the struggle against SARS and other cataclysms such as the Wenchuan earthquake.
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 not place undue reliance on forward-looking statements and forward-looking information. The Company does not assume any obligation to update the forward-looking statements and forward-looking information contained in this release 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.
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