Posted: Thursday Feb 6 7:32:48AM 2014
Today's news release says that the company has signed a multi-year MOU for the licensing of its products in part of the Middle East. This should result in minimum revenue to BIO of $5M over 60 months, or over $80k/month. According to the company, their core cash burn rate is under $100k/month, so this MOU should pretty well get them to break even, meaning that most of the revenue from any large one time contracts - like the $6M one noted in my December 30th posting - should go to the bottom line. Even for those large one time sales, there might be additional sales opportunities going forward.
2014-02-06 09:07 ET - News Release
Mr. Robert Kaul reports
BIOSIGN ENJOYS SUCCESS AT ARAB HEALTH 2014
Biosign Technologies Inc. has executed of a memorandum of understanding with Novosante Healthcare, a division of Gulf Holdings LLC, based in Sharjah, UAE.
Biosign attended Arab Health 2014 at the invitation of the government of Ontario, with a presence in the Ontario booth. During Arab Heath, the company met several times with Sheikh Sultan bin Khalid al Qassimi, chairman and chief executive officer of Gulf Holdings, a diversified conglomerate that owns over 50 companies. Novosante is a newly created subsidiary of Gulf Holdings, focusing on marketing and distributing cutting-edge medical and health care technology.
The terms of agreement between Biosign and Novosante are as follows: Novosante will be an exclusive agent for Biosign products in the Gulf Cooperation Council Region which covers the United Arab Emirates, Saudi Arabia, Kuwait, Oman, Qatar and Bahrain. In addition, Novosante will represent Biosign in Iraq and Jordan. In other territories where Gulf Holdings has a presence, Novosante will partner with Biosign on a non-exclusive or conditionally exclusive basis.
Commercial efforts will focus on selling Biosign software solutions that are ready for immediate deployment in the region, including Healthanywhere, ClinicServer, PencilThat and QCare. Meanwhile, Novosante will expedite the approval process for the Biosign Pulsewave health monitor system with the various regional ministries of health, which will fast-track import approval for Pulsewave devices.
The agreement stipulates minimum revenues to Biosign of $5-million (U.S.) over an initial 60-month term. The parties agree to complete a definitive distribution agreement as soon as possible but no later than March 31, 2014.
Biosign chief executive officer Robert Kaul stated: "We are pleased to execute this agreement with Novosante. Our experience in the region has underlined the importance of working with the right partners. There could be no better partner and mentor than Sheikh Sultan, who enjoys a worldwide reputation as a visionary businessman and investor. Statistics indicate that the countries of the Gulf region suffer from some of the world's highest rates of hypertension, Type 2 diabetes and other health challenges. Our engagement with Novosante and Gulf Holdings immediately positions Biosign for success in this important and growing market."
We seek Safe Harbor.
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Posted: Tuesday Dec 31 5:38:38PM 2013
Today's news release basically says that Biosign is acquiring the company it's partnering with to fill that $6M order mentioned in my previous posting. It means that BIO now has a full range of offerings, from clinic management software to patient monitoring devices & software. There should be lots of integration and cross-selling opportunites going forward. Here's the start of the NR:
Biosign to acquire IBL Internet for $1.96-million
2013-12-31 09:07 ET - News Release
Mr. Robert Kaul reports
BIOSIGN ACQUIRES IBL INTERNET BUSINESS LOGIC INC.
Biosign Technologies Inc. has entered a share purchase agreement (SPA), under which it has agreed to acquire 100 per cent of the issued and outstanding shares of St. John, N.B.-based IBL Internet Business Logic, a practice management software developer, and creator of ClinicServer and PencilThat software platforms.
Posted: Monday Dec 30 11:46:46AM 2013
From what I'm told, Biosign is on the leading edge of tech for non-invasive monitoring, analysis and reporting of data re cardiovascular conditions. Their offering showed well at a recent health expo and they've just received their first order, which was for $6M. They claim that 2014 will be their first profitable year.
If their offering catches on they should do well, but that's a big if. There are no fundamentals to report other than the company burns cash every quarter. This order should ensure that they're good for a few quarters. No p/e of course, not much cash and a small amount of debt. Nonetheless, if they can land a few more big orders, things should go well.
This isn't my normal type of selection because of the lack of fundamentals, so it's purely speculative. There is a conference call replay on the comapny website, if anyone's interested.
I'm in for a few shares, but this one is not for the faint of heart. Price in in the 5 to 6 cent range.