Diagnos Inc.
TSX VENTURE : ADK

Diagnos Inc.

September 23, 2015 12:11 ET

DIAGNOS Provides General Business Update

BROSSARD, QUEBEC--(Marketwired - Sept. 23, 2015) - DIAGNOS Inc. ("DIAGNOS" or "the Corporation") (TSX VENTURE:ADK), a leader in healthcare technical services including screening, software and algorithm development, data analysis, and image processing, provides a business update including its operating activities worldwide.

Financial Position

With the recent announcements with regards to the closing of the Corporation's $2.29 million private placement of convertible debentures, DIAGNOS' financial position has been significantly enhanced. DIAGNOS continues to carefully monitor spending with a focus on investing in value added activities aimed at reaching profitability.

India

Our subsidiary in India has signed an expansion agreement valued at up to $1.3 million with a global pharmaceutical partner following the original announcement on December 17th, 2013, with the following key highlights;

  • Addition of three mobile screening units in Delhi, Chennai, and Kolkata;
  • Cumulative screening target of 60,000 patients per year;
  • Three year term;
  • DIAGNOS will provide project management, technicians, drivers, image interpretation, branded vans, CARA (telemedicine platform), fundus cameras, and other necessary equipment; and
  • Mumbai will remain DIAGNOS' base of operations in India.

"Since our initial announcement of the project in 2013, we have screened thousands of patients in Mumbai and the surrounding area. Our client, along with patients and the clinics used in our screening locations, have responded extremely positively to our screening services. As a result of the success of our first screening unit, the new units will function in a similar manner to those initially introduced in Mumbai. We are excited to expand into additional cities in India and look forward to continuing our grow efforts in the country," said André Larente, DIAGNOS' President.

United States

DIAGNOS through DARC, a U.S. based service provider, has been awarded a contract in support of two clinical trials in conjunction with the two large U.S. pharmaceutical companies in the ophthalmic space. The trials will start in October 2015 with the aim of determining the quantitative effect of not being screened for retinopathy on a yearly basis.

Additionally, DIAGNOS continues to conduct screening events with a leading ophthalmology pharmaceutical company in the U.S. and expects to expand its services in 2016.

Mexico

Our subsidiary in Mexico has initiated a pilot study with Groupo Devlyn, the largest eye care provider in Central America, with the following key highlights;

  • Addition of two stationary screening units in Mexico City and Veracruz; et
  • Devlyn began its operations 80 years ago as a small optical shop in northern Mexico and have grown to become a leader in optical and ophthalmology products and services, with a dominant presence in Mexico, El Salvador, Guatemala and the United States (LA, San Antonio, and Austin) with a total of 1,200 locations.

Elsewhere in Mexico, the pilot project with a global pharmaceutical company previously announced on June 22, 2015 was initiated in July and has screened a total of 937 patients as of September 21, 2015. DIAGNOS has received positive feedback and expects to expand to a larger scale project.

Argentina

This fall, DIAGNOS expects to begin a pilot study with a global pharmaceutical partner in Argentina, pursuant to a contract awarded last year. The pilot's target is to screen 5,000 patients in 12 months.

Turkey

DIAGNOS also expects to begin a pilot study with the same global pharmaceutical partner this fall in Argentina, pursuant to a contract awarded last year. The screening unit will travel to multiple locations within the country throughout the year.

Spain

DIAGNOS has signed an agreement with a private clinic in Madrid, Spain and will provide a stationary screening unit.

Poland

The subsidiary Diagnos Poland Sp. Z. o.o. is now in operations and working with hospitals and clinics in Warsaw. DIAGNOS has screened almost 1,000 patients with its pharmaceutical partner in Poland and is looking to expand with its partner elsewhere in Europe.

United Arab Emirates

DIAGNOS continues to conduct screening with 12 mobile screening units with a global pharmaceutical partner in the UAE in its third year of operations with the client.

Algeria

SARL DIAGNOS MEDICAL, owned 47% by DIAGNOS, continues business development efforts in the country during its first year in operation. DIAGNOS currently has three private clinics as clients in the region.

Canada

On September 11, DIAGNOS successfully completed the recertification process for internationally recognized quality management standards ISO13485 and ISO9001 for its CARA (Computer Assisted Retinal Analysis) technology. DIAGNOS' quality management system was audited, assessed and registered by Intertek Testing Services NA Ltd., a CMDCAS (Canadian Medical Devices Conformity Assessment System) recognized registrar as conforming to the above standards. As of today DIAGNOS has screened over 50,000 diabetic patients.

Mining

DIAGNOS continues in its discussions with potential acquirers in Canada and the U.S. Concurrently, the mining division has signed six new contracts with mining companies in Canada for a total value of $350,000 CAD. The revenues derived from these contracts are expected to offset the operating costs related to this division. In addition to the cash received for these contracts, DIAGNOS has added two new NSR royalties and should receive shortly 1,400,000 million shares from clients.

About DIAGNOS

Founded in 1998, DIAGNOS is a publicly traded Canadian corporation, with a mission to commercialize technologies to improving decision making processes in different sectors. DIAGNOS offers products, services, and solutions to clients in a variety of fields including healthcare and natural resources.

About DIAGNOS Healthcare

DIAGNOS Healthcare is a business division with DIAGNOS Inc., achieving international recognition as leader in healthcare technical services including, screening, software and algorithm development, data analysis, and image processing. Through its Healthcare division, DIAGNOS offers turn-key diabetic retinopathy screening services to patients in various locations around the world.

Forward-looking information

This document contains forward-looking information that involves risks and uncertainties. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in these statements. Unless required under law, DIAGNOS will not update this forward-looking information to reflect new events or circumstances.

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

For further information, please contact DIAGNOS, visit our website at www.diagnos.com, or visit the SEDAR website at www.sedar.com.

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