TORONTO, ONTARIO -- (Marketwire) -- 06/26/12 -- CardioComm Solutions, Inc. (TSX VENTURE: EKG) ("CardioComm Solutions" or the "Company") today announced an exclusive distribution agreement with WAISCO Medical and Scientific Solutions, a division of WAISCO Group ("WAISCO"), for exclusive distribution of the HeartCheck PEN and HeartCheck ECG Monitor within the territories of Saudi Arabia, the United Arab Emirates and Kuwait.
"These three countries represent key markets for us in the Middle East with a combined population of nearly 40 million and heavy investments into health infrastructure and medical technologies," said Etienne Grima, Chief Executive Officer of CardioComm Solutions. "We worked with the Canadian Trade Commissioner and other partners in the region to identify and evaluate a number of potential distributors for these key territories. While the due diligence took several months to complete, we selected WAISCO as our main distributor for the HeartCheck Products. WAISCO will coordinate with several other medical device sales companies within the three countries that had themselves undergone review for exclusive distribution rights."
WAISCO will have twelve months to complete the regulatory application process within all three countries; however, it is expected to take less than six months to implement first sales. Two requirements for approval in these regions are FDA clearance and ISO certification, both of which the CardioComm Solutions already has.
Under the terms of the agreement, WAISCO has committed to order a minimum of 15,000 HeartCheck devices within the first year to be received in quarterly shipments. In the second year, WAISCO will place minimum quarterly orders of 40,000 units totaling an annual volume of 160,000 units. The agreement is renewable in two year cycles for a maximum of ten years and is conditional on the minimum annual targets being achieved.
"We are pleased to have secured this contract. The HeartCheck devices will fulfill a need for cost effective and reliable ECG monitoring in both the community and hospital setting. WAISCO is connected with numerous hospitals, clinic and pharmacies in the region and we anticipate sales to start as soon as approvals are in place. Preliminary market reviews have shown significant interest in the HeartCheck PEN specifically, which is primarily why we engaged CardioComm Solutions to contract with WAISCO," said Magid Hegab, Sales Manager for WAISCO.
Revenue to the CardioComm Solutions will be realized from device sales as well as from the Smart Monitoring service. With the HeartCheck PEN cleared in December 2011 as an ECG unlockable, over-the-counter heart rhythm monitor device and in May 2012 as an unlocked prescription ECG monitor, consumer and physician markets are both now available to generate significant revenue.
"We are pleased with this first distributor agreement and are working to qualify additional medical supply companies over the summer in advance of large volume production runs. This is the first of several agreements expected this summer," added Etienne Grima.
About CardioComm Solutions
CardioComm Solution's 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, Inc. is headquartered in Toronto, Canada, with offices in Victoria, B.C.
Founded in 1980 in the Kingdom of Saudi Arabia, WAISCO Group has grown into Medical and Scientific Solutions provider with experience in Mobile Medical Solutions, Healthcare Design, Construction, Project Management and Interior Design. WAISCO's Regional Office for MENA region (Middle East & Northern Africa) is located in Dubai at heart of the business district. While relatively new to point of care medical device solutions sales, WAISCO is leveraging its greater than 40 years of experience and relationship, especially the medical faculty construction, to make quick access into the hospital and physician market space.
This release may contain certain forward-looking statements 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. By their nature, forward-looking statements 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.
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CardioComm Solutions, Inc.
Chief Executive Officer