CardioComm Solutions Provides Update Respecting Debt Settlement

Rhea-AI Summary

CardioComm Solutions has announced an update regarding its debt settlement transactions with certain creditors. The company plans to issue 41,909,368 common shares at $0.01 per share to settle an aggregate debt of $419,093.68. This includes $318,786.12 owed to non-arm's length parties, settled through the issuance of 31,878,612 shares. The debt includes $44,360.41 in company expenses covered by non-arm's length parties. The issued shares will be subject to a four-month hold period and require approval from the TSX Venture Exchange. Transactions with company directors are classified as 'related party transactions' but are exempt from certain requirements under Multilateral Instrument 61-101.

Positive

• CardioComm will issue 41,909,368 shares to settle $419,093.68 in debt, reducing financial liabilities.
• The company will settle $318,786.12 owed to non-arm's length parties, including $44,360.41 in expenses covered by these parties.

Negative

• Issuing new shares may lead to dilution of existing shareholders' equity.
• The settlement is subject to TSX Venture Exchange approval, which introduces regulatory uncertainty.

Toronto, Ontario--(Newsfile Corp. - July 8, 2024) - CardioComm Solutions, Inc. (TSXV: EKG) ("CardioComm" or the "Company"), a global medical provider of consumer heart monitoring and medical electrocardiogram ("ECG") software solutions, is pleased to provide an update respecting its proposed debt settlement transactions with certain creditors (the "Creditors") of the Company (see CardioComm's news release dated June 3, 2024 for CardioComm's initial announcement). Pursuant to debt settlement agreements with the Creditors, the Company will now issue an aggregate of 41,909,368 common shares of the Company ("Shares") to the Creditors at a deemed price of $0.01 per Share to settle an aggregate of $419,093.68 in outstanding debt owed by the Company to the Creditors. The debt to be settled includes $318,786.12 owed to non-arm's length parties which will be settled by the issuance of 31,878,612 Shares, which non-arm's length party debt includes $44,360.41 in Company expenses paid for by such non-arm's length parties. When issued, the Shares will be subject to a four month hold period in accordance with applicable securities laws and the policies of the TSX Venture Exchange. The debt settlement transactions and the issuance of the Shares thereunder is subject to receipt of approval from the TSX Venture Exchange.

Certain directors of the Company participated in the debt settlement transactions, and each transaction with a director is considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). Each transaction with a director of the Company is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value of each transaction does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101.

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/215912

FAQ

What is the recent update from CardioComm Solutions on debt settlement?

CardioComm Solutions will issue 41,909,368 shares at $0.01 per share to settle $419,093.68 in debt.

How many shares will CardioComm Solutions issue to settle its debt?

CardioComm Solutions will issue 41,909,368 common shares.

What is the deemed price per share for CardioComm Solutions' debt settlement?

The deemed price per share for the debt settlement is $0.01.

What is the total amount of debt CardioComm Solutions is settling?

CardioComm Solutions is settling a total debt of $419,093.68.

Will the shares issued in CardioComm's debt settlement be subject to any holding period?

Yes, the shares will be subject to a four-month hold period.

Does the CardioComm debt settlement require any approvals?

Yes, the debt settlement requires approval from the TSX Venture Exchange.

What is the significance of the 'related party transactions' in CardioComm's update?

The debt settlement involves transactions with company directors, classified as 'related party transactions' under MI 61-101.

Are there any exemptions applicable to CardioComm's related party transactions?

Yes, these transactions are exempt from formal valuation and minority shareholder approval requirements under MI 61-101.