ZoomMed to focus on U.S. market by selling to TELUS Health an interest in its ZRx Prescriber Technology and related Canadian operations
Montreal, September 3, 2014 – ZoomMed Inc. (TSX-V: ZMD) – ZoomMed has sold an interest in the technology underlying its ZRx Prescriber Technology and certain related Canadian operations to TELUS Health for up to $6,800,000 which will allow ZoomMed’s team to continue its worldwide distribution of its unique prescriber, with ongoing priority focus on the U.S. market. TELUS Health is Canada’s largest Electronic Medical Records (EMR) provider and a leader in the Canadian claims and benefits management sector.
The $6,800,000 purchase price terms and conditions includes a cash payment of approximately $5,000,000 at closing, $500,000 in adjustments regarding deferred revenues and $1,300,000 contingent payment subject to certain conditions. ZoomMed will use the proceeds of this transaction to reimburse its actual debenture and for working capital in order to invest in the marketing and deployment of the ZRx Prescriber technology worldwide.
As part of the agreed transactions, ZoomMed retains its exclusive intellectual property in the ZRx Prescriber for the United States and the United Kingdom. TELUS Health will hold for its part the exclusive intellectual property in the ZRx Prescriber in Canada. Pursuant to this agreement and subject to the specific exploitation conditions, ZoomMed and TELUS Health will share the intellectual property in the ZRx Prescriber in the rest of the world.
The TSX Venture Exchange has granted a conditional approval for this transaction but remains subject to its final approval.
“ It is very rewarding that our vision for the ZRx Prescriber will be expanded throughout Canada by TELUS Health. Their integration of our unique electronic prescribing solution as a key component of their expansive network confirms its universal appeal and potential. This transaction will enable ZoomMed, through the deployment of the ZRx Prescriber across the expansive and world-class TELUS network, to enjoy a wonderful showcase of world-class technology in Canada, which supports our efforts to penetrate the American and international markets.” comments Yves Marmet, President, ZoomMed.
ZRx Prescriber is currently used by 520 clinics in Quebec and Ontario to process 400,000 new prescriptions monthly. TELUS Health plans to gradually integrate the advanced capabilities of the ZRx Prescriber functionality into EMRs used by more than 13,000 physicians across Canada.
ZoomMed builds and operates “ZoomMed’s communication network”, a clinical information exchange platform between physicians and the various other stakeholders of the healthcare sector, such as pharmacists, specialists, pharmaceutical corporations and private insurers. The cornerstone of this network is ZoomMed’s “ZRx Prescriber”, a technological innovative Web application that greatly simplifies the writing of a prescription for the physician. Since it is a stand-alone product, it can easily be integrated to any Electronic Medical Record application (EMR).
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. Statements made in this news release that are not historical facts are “forward-looking statements” and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these “forward-looking” statements.