VICTORIA, BRITISH COLUMBIA--(Marketwire - March 22, 2010) - CardioComm Solutions, Inc. (TSX VENTURE:EKG) ("CardioComm" or the "Company") today announced that it will be conducting a non-brokered private placement equity financing under which it will issue 10,000,000 units at a price of $0.05 per unit for gross proceeds of $500,000. Each unit will be 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. The subscriber under the financing will be MD Primer Inc., which is a control person of the Company. Dr. Anatoly Langer, the Company's Chairman and acting CEO, is the majority shareholder of MD Primer Inc. The securities to be issued under the financing will be subject to a four month hold period.
The terms of the financing are subject to the approval of the TSX Venture Exchange. The proceeds from the financing will be used for general working capital of the Company.
The Company also announced that it has settled an aggregate of $81,250 of outstanding debt of the Company in exchange for the issuance of common shares. The debt represents accrued management fees for the fourth quarter of 2009. Allocations of shares are as follows: Dr. Anatoly Langer, the Company's Chairman and interim CEO, will receive 750,000 shares representing $37,500 of debt; Etienne Grima, the Company's CFO and Secretary, will receive 500,000 shares representing $25,000 of debt; and Healthcare Works Inc. which provides Chief Medical Officer services to the Company and is under the control or direction of Dr. Anatoly Langer, will receive 375,000 shares representing $18,750 of debt. The shares for debt transactions are being undertaken pursuant to management agreements previously approved by the TSX Venture Exchange in 2008.
Upon completion of the private placement and the debt settlement, MD Primer Inc. will hold 21,196,666 shares of the Company, representing approximately 34.8% of the Company's outstanding shares, and 12,666,666 share purchase warrants of the Company. Dr. Langer will hold or have control or direction over 30,923,081 shares, representing approximately 50.7% of the Company's shares, and 12,666,666 warrants.
About CardioComm Solutions, Inc.
CardioComm's patented and proprietary technology is used in products for the recording, viewing, analyzing and storing of electrocardiograms (EKGs), for diagnosis and management of cardiac patients. The Company's products are sold worldwide through a combination of its external distribution network and its North American based sales team. CardioComm has achieved its technical goals of improved access and communication through the development of a real-time EKG viewer. CardioComm is the first company to provide a real-time means of viewing EKGs over a network (LAN, WAN or Internet). This tool enables EKGs to be viewed and controlled live, by physicians, over a global virtual healthcare network. This technology is marketed as Global EKG Management System (GEMS™) and GlobalCardio™. CardioComm's software products have been cleared for sale in the United States by the U.S. Food and Drug Administration. The Company has earned the latest ISO 13485 certification.
On behalf of the Board of Directors of CardioComm Solutions, Inc.
Dr. Anatoly Langer, Chairman
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.