NEW YORK, Feb. 08, 2024 (GLOBE NEWSWIRE) -- Evome Medical Technologies Inc. (the "Company" or "Evome") has executed a non-binding letter of intent (LOI) to extend acquisition debt of US$3,294,440 to the sellers of Simbex, LLC ("Simbex") to June 30, 2025. In exchange for the extensions, the Company intends to grant the Simbex sellers (i) a subordinated security interest in all non-Biodex assets, (ii) a 10% annual interest rate on the amount due from April 14, 2023 to the due date, (iii) cash payments when free cash flow balances of the Company exceed $500,000 after payments to other creditors with priority, and (iv) a waiver from the contractual restriction from holding more than 500,000 common shares of Evome (the "Common Shares") at any one time. As part of the transaction, Simbex sellers have indicated an intention to convert the 4,640,708 Class A non-voting shares (the "Class A Shares") still held into Common Shares.

The Company has increased sales targets by 7.5% for all distributors in the United States as well as raising Biodex product prices 2% on all products effective January 1, 2024 for the US market. The management believes these new targets and price increases should have a positive impact on the current quarter.

"I am pleased we were able to restructure and extend this last part of our acquisition debt obligation," said Mike Seckler, CEO of Evome Medical Technologies Inc. "This enables the Company to use capital in the coming quarters to accelerate growth and work towards building cash on our balance sheet. 2024 is shaping up to be an exciting year for us. We have two new products we expect to launch shortly. We have a new sales and marketing team that has improved our distribution contracts by incorporating performance metrics including volume minimums. We have reorganized the board of directors and the top management to focus on our business plan. This debt extension follows my plan to provide time and space to execute our business plan over the next 18 months. As part of the negotiations with the Simbex sellers, we made sure this debt extension did not violate any of the terms of our previous agreement executed with holders of our other acquisition debt and our current bank lines."

For more information please contact:‎

Mike Seckler
Chief Executive Officer
Tel: 1 (800) 760-6826‎
Email: info@evomemedical.com

Additional Information

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the ‎policies of ‎‎the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this ‎release.‎

Unless otherwise specified, all dollar amounts in this press release are expressed in Canadian ‎‎dollars.‎

Certain statements contained in this press release constitute "forward-looking information" within the ‎meaning of ‎‎the Private Securities Litigation Reform Act of 1995 and applicable Canadian securities ‎laws. These statements can ‎‎be identified by the use of forward-looking terminology such as "expects" ‎‎"believes", "estimates", "may", "would", ‎‎‎"could", ‎‎"should", "potential", ‎‎‎‎‎"will", "seek", "intend", ‎‎"plan", and "anticipate", and similar expressions as they ‎‎relate ‎‎‎‎to the Company, including: the Company executing a definitive agreement with the Simbex sellers and closing the transaction as contemplated by the LOI disclosed herein; and the timing and number of products the Company intends to launch. All ‎statements ‎other than statements of ‎historical fact may be forward-looking‎ information. Such ‎statements ‎‎reflect the Company's current views and intentions with respect to future ‎events, and ‎current information ‎available ‎to the Company, and are subject to certain risks, ‎uncertainties and ‎assumptions, including: the successfully negation and execution of a definitive agreement related to the LOI disclosed herein; the Company receiving all necessary approvals ‎for the transaction described herein; and all ‎conditions to closing the transaction described herein being satisfied or waived. The Company cautions that ‎the forward-looking statements contained ‎herein are qualified by important ‎factors that could cause ‎actual results to differ materially from those reflected by ‎such statements. Such factors ‎include but ‎are not limited to the ‎‎general business and ‎‎economic ‎conditions in the ‎regions in ‎which the Company ‎‎operates; the ability of the Company to execute on key ‎‎priorities, ‎including the ‎successful completion ‎of ‎acquisitions, business‎ retention, and‎‎ strategic plans and to‎‎ attract, develop ‎and retain key ‎‎executives; difficulty ‎integrating newly acquired businesses; ‎‎ongoing or new disruptions in the supply ‎chain, the ‎extent and scope of ‎such supply chain disruptions, and the timing or extent of the resolution ‎or improvement of ‎such disruptions; the ‎ability to‎‎‎ implement business strategies and pursue business ‎opportunities; ‎‎disruptions in or ‎attacks (including ‎‎cyber-attacks) on the Company's information ‎technology, internet, network access or other ‎‎voice ‎or data ‎‎communications systems or services; the ‎evolution of various types of fraud or other ‎‎‎criminal behavior to ‎which ‎ ‎the Company is exposed; the ‎failure of third parties to comply with their obligations to ‎‎ the Company or its ‎‎‎affiliates; the‎ impact of ‎new and changes to, or application of, current laws and regulations; ‎granting of permits ‎‎and licenses ‎in a highly regulated business; the ‎overall difficult ‎‎‎‎‎litigation environment, including in the United ‎‎‎States; increased competition; changes in foreign currency rates; ‎increased ‎‎‎‎funding ‎costs and market ‎volatility due ‎‎to market illiquidity and competition for funding; the ‎availability of funds ‎‎‎‎and ‎resources to pursue operations; ‎‎critical ‎accounting estimates and changes to accounting standards, ‎policies,‎‎‎‎ and methods used by the Company; ‎the ‎occurrence of natural and unnatural‎‎ catastrophic ‎‎events ‎and claims ‎‎‎‎resulting from such events; as well as ‎those ‎risk factors discussed or ‎referred to ‎in ‎the ‎Company's disclosure ‎documents filed with United States ‎Securities and ‎Exchange Commission ‎‎and ‎available at ‎www.sec.gov, and with ‎the securities regulatory authorities ‎in certain ‎provinces of ‎Canada and ‎‎available at ‎. Should any ‎factor affect the Company in an ‎unexpected ‎‎manner, or should ‎‎assumptions underlying ‎the forward-looking ‎information prove incorrect, the actual ‎‎results or ‎events may differ ‎‎materially from the results ‎or events predicted. ‎Any such forward-looking ‎information ‎is ‎expressly qualified in its ‎‎entirety by this cautionary ‎statement. Moreover, ‎the Company ‎does not assume ‎‎responsibility for the accuracy or ‎‎completeness of such ‎forward-looking ‎information. ‎The forward-looking ‎‎information included in this press release ‎‎is made as of the ‎date of this press ‎‎release and the Company undertakes ‎‎no obligation to publicly update or revise ‎‎any forward-‎looking ‎information, ‎other than as required by applicable ‎‎law‎.‎