Biosign Technologies Inc. is pleased to announce that it has completed the previously-announced acquisition of 51% of issued and outstanding shares of Meck Medical GmbH.
Klingenberg Germany-based MECK is a developer of innovative 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 .
In connection with the acquisition, the Company has agreed to provide MECK a loan to fund its operations of up to 100,000 Euros per month to a maximum of 2.4 million Euros in the aggregate. MECK is required to have a reserve pool of not less than 50,000 Euros at all times. The loan will bear interest at 5.75% per annum and is repayable based on future MECK profits with maturity in 5 years from the date of the first advance. In connection with the acquisition, MECK has agreed to pay a co-founder a total of 1,000,000 Euros over 8 quarters starting in August 2014 to acquire certain intellectual property.
In order to finance the cash portion of the purchase price for the MECK acquisition and related transaction costs, the Company arranged for an arm’s length, unsecured demand loan in the principal amount of 1.2 million Euros , with interest payable at the Bank of England prime rate plus 3% per annum.
Over the past few months, management of the Company has been in discussions to secure sufficient financing to support the ongoing cash requirements of its operations and complete acquisitions, including the previously-announced QLINE Solutions Inc. transaction which has not yet closed. Although the Company has been able to secure a portion of the required funding, management is continuing its efforts to secure additional funding for the Company’s short and long-term obligations. The financing alternatives include debt and/or equity financings, asset sales and rights offerings to existing shareholders. While the Company is striving to achieve its financing plans, there is no assurance that future funding will be available on favourable terms to the Company, or at all.