Biosign Technologies has announced the execution of a share purchase agreement (SPA) under which it has agreed to acquire 51% of the issued and outstanding shares of MECK Medical.
MECK is a developer of healthcare software solutions assembled into a cloud-based platform that provides facility management services, document management, prescription management, wound management and social networking services to the long term care, nursing home and extended care industries in Germany.
MECK earns recurring license fees for each facility installation on a per-patient basis, as well as transactional revenue from appointments, prescriptions or other procedures scheduled and managed managed by the system. In addition, MECK earns fees for various services provided directly to consumers.
Currently, MECK solutions are installed in a number of German healthcare facilities. It is expected that MECK’s platform will roll out to an expanding number of long term care facilities under a framework contract with their launch customer, Caritas, a large operator of German nursing home and extended care facilities.
Biosign will operate MECK within its wholly owned European subsidiary, Biosign Technologies GmbH, also based in Germany.
The purchase price will be satisfied with a cash payment of €875,000, and by the issuance of 3,000,000 common shares of Biosign at an ascribed price of $0.05 per share, being a premium to the market price at the execution date of the SPA.
This transaction is subject to receipt of all necessary regulatory and government approvals. The common shares to be issued to the vendor in connection with this transaction will be subject to a regulatory hold period of four months and one day.
Biosign CEO Robert Kaul said that the company is pleased to announce this acquisition and welcome the team at MECK to the Biosign family.
"The software developed by MECK is complementary to the other solutions in the Biosign healthcare software portfolio – our combined offerings will be very synergistic. For example MECK brings us modules such as wound management and prescription management, while in turn, Biosign can provide MECK customers with remote patient monitoring, Pulsewave® medical devices, and access to the new technology we are developing for the Qualcomm Tricorder XPRIZE. This kind of 21st-Century convenience, security and value is a good example of the type of leading software solutions Biosign is now proud to provide," Kaul added.