FOR: CARDIOCOMM SOLUTIONS, INC.
TSX VENTURE SYMBOL: EKG
July 5, 2016
Agreement will extend SMART Monitoring ECG service connectivity to ECG device manufacturers'
private and OEM labels
TORONTO, ONTARIO - Established medial electrocardiogram (“ECG”) software and device manufacturer CardioComm Solutions, Inc. (TSX VENTURE:EKG) (“CardioComm Solutions” or the “Company”) today announced an ECG service license and co-marketing agreement for devices manufactured by China-based, BORSAM Biomedical Instruments CO., Ltd. (“BORSAM”), a medical-grade, ECG OEM device manufacturer.
The announcement was made following completion of product compatibility testing of two Bluetooth handheld ECG devices and CardioComm Solutions’ GEMS™ and GlobalCardio™ ECG management software platforms. Connectivity to iOS and Android Smartphones will be managed by a downloadable App designed by CardioComm Solutions and based on the Company’s FDA cleared and Health Canada approved GEMS™ software. ECGs will be transmitted to Smartphones through the GEMS™ App for real-time/continuous monitoring. ECGs can be saved and then transferred to the Company’s cloud-based SMART Monitoring ECG reading service when convenient or required. Once uploaded, ECGs can be reviewed and reported by physicians and feedback provided based on the ECG review findings.
||Execution of this agreement will allow both companies to co-market and distribute the handheld ECG devices through their respective distribution networks in overseas markets. Importantly, the SMART Monitoring licensing component of the agreement will see BORSAM actively promote access and use of CardioComm Solutions’ ECG reading service as a device feature enhancement.
As a result of this agreement, CardioComm Solutions stands to realize new revenue streams from two sources. Devices currently manufactured by and sold through existing BORSAM-brokered North American and overseas sales channels will be charged a one-time GEMS™ Smartphone App download fee. Once devices are connected to the SMART Monitoring ECG reading service, additional and recurrent revenue will be generated through use of the service. BORSAM will stand to see higher device sales as a result of their integration with a credible ECG management solution that will provide applications for hospital, m-health and wellness market use. BORSAM will also be provided a portion of the GEMS™ App download fee and recurrent ECG reading NET revenues for their SMART Monitoring co-marketing efforts.
BORSAM has confirmed that their branded ECG devices are being marketed in China, Italy, Greece, Spain, Turkey, Kuwait, Thailand and India. North American market sales are carried out through private label OEM agreements.
In addition to integration with the “WeCardio” ECG card and the “ECG Check” Smartphone case device brands, CardioComm Solutions is working with BORSAM to develop a second agreement where the parties will cooperate further to identify which of several new ECG devices may be brought forward to hold the HeartCheck™ brand for North American sales. Device selection will be based on market advantages which will include design, ease of use and end-user pricing. CardioComm Solutions will manage FDA and Health Canada regulatory Class II medical device applications for the selected devices. In return, CardioComm solutions will hold exclusive North America sales and marketing rights for the new devices under the HeartCheck™ brand.
Through completion of such agreements with CardioComm Solutions, global ECG device manufacturers can offer their distributors and customers, access to a complete end-to-end and credible ECG management solution. This will help users of these new ECG devices to identify whether they have cardiac arrhythmia conditions that can cause stroke, sudden cardiac death as well as indicate whether their heart rate and rhythm are normal.
The agreement is the third in a series of recent announcements outlining the Company’s growing position as the provider of choice for “back-office” ECG management software solutions for leading ECG device manufacturers. The Company believes they will continue to see interest from ECG device manufacturers in using the GEMS™ and GlobalCardio™ ECG management software platforms to enable the use of their innovative ECG devices and for more opportunities to bring new HeartCheck™ branded devices to market.
CardioComm Solutions has earned the ISO 13485 certification, is HPB approved, HIPAA compliant and holds clearances for the sale of the HeartCheck™ technologies from the European Union (CE Mark), Australia (TGA), the USA (FDA), China (CFDA) and Canada (Health Canada). To learn more about the CardioComm Solutions’ products and for further updates regarding HeartCheck™ ECG device integrations, please see the Company’s websites www.theheartcheck.com and www.cardiocommsolutions.com.
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.
INFORMATION PLEASE CONTACT:
Etienne Grima, Chief Executive Officer
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).
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