CardioComm Solutions Enters Loan Agreement
Rhea-AI Summary
CardioComm Solutions (TSXV: EKG), a global provider of consumer heart monitoring and medical ECG software solutions, has entered into a revolving line-of-credit loan agreement with a company controlled by director Daniel Grima. The loan provides additional funding of up to $500,000, with an 8% annual interest rate and a repayment deadline of July 22, 2026. The loan is secured against the company's assets and can be repaid without penalty. The lender has the option to convert the loan into common shares at the TSX Venture Exchange's "discounted market price."
Additionally, CardioComm has issued 125,000 stock options to CEO Etienne Grima, exercisable at $0.05 per share for five years, vesting immediately. Both transactions are subject to regulatory approvals and securities laws.
Positive
- Secured additional funding of up to $500,000 through a revolving line-of-credit loan agreement
- Option to repay the loan at any time without penalty
- Lender can convert the loan into common shares, potentially reducing debt burden
Negative
- 8% annual interest rate on the loan
- Loan is secured against company assets, potentially putting assets at risk
- Related party transaction may raise concerns about conflicts of interest
- Potential dilution of existing shareholders if loan is converted to shares
News Market Reaction 1 Alert
On the day this news was published, EKGGF declined NaN%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Toronto, Ontario--(Newsfile Corp. - July 22, 2024) - CardioComm Solutions, Inc. (TSXV: EKG) ("CardioComm" or the "Company"), a global medical provider of consumer heart monitoring and medical electrocardiogram ("ECG") software solutions, announces that it has entered into a revolving line-of-credit loan agreement with a company (the "Lender") controlled by Daniel Grima, a director of CardioComm dated as of July 22, 2024, representing additional available funding as needed of up to
The Company has the right to repay any loan amounts outstanding at any time, plus interest, in whole or in installments, without penalty. In addition, the Lender may elect to convert some or all of the loan amount outstanding at any time into common shares of the Company at a price per share equal to the "discounted market price" under the policies of the TSX Venture Exchange. Any conversion of debt into shares will be subject to applicable securities laws and approval of the TSX Venture Exchange.
The Lender is a company controlled by Daniel Grima, a director of the Company. Accordingly, the loan transaction is considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value of the transaction does not exceed
The Company also announces that it has issued 125,000 stock options to Etienne Grima, the Company's CEO, in accordance with his employment agreement. The options are exercisable at
To learn more about CardioComm's products and for further updates regarding HeartCheck™ ECG device integrations please visit the Company's websites at www.cardiocommsolutions.com and www.theheartcheck.com.
About CardioComm Solutions
CardioComm Solutions' patented and proprietary technology is used in products for recording, viewing, analyzing and storing electrocardiograms 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. CardioComm Solutions has earned the ISO 13485 certification, is HIPAA compliant and holds clearances from the European Union (CE Mark), the USA (FDA) and Canada (Health Canada).
FOR FURTHER INFORMATION PLEASE CONTACT:
Etienne Grima, Chief Executive Officer
1-877-977-9425 x227
egrima@cardiocommsolutions.com
investor.relations@cardiocommsolutions.com
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/217411
FAQ
What is the maximum amount CardioComm Solutions (TSXV: EKG) can borrow under the new loan agreement?
What is the interest rate and repayment deadline for CardioComm Solutions' (TSXV: EKG) new loan?
Who provided the loan to CardioComm Solutions (TSXV: EKG)?
How many stock options were issued to CardioComm Solutions' (TSXV: EKG) CEO and at what price?
