Healthscreen Solutions Inc.

Healthscreen Solutions Inc.

August 25, 2011 09:14 ET

Healthscreen Announces Delay in Filing Q3 2011 Financial Statements and Discovery of Likely Material Misstatements in Prior Period Financial Statements

TORONTO, ONTARIO--(Marketwire - Aug. 25, 2011) - Healthscreen Solutions Inc. ("Healthscreen") (TSX VENTURE:MDU) today announced that in light of its current lack of financial resources and due to concerns that have arisen related to prior period financial statements, it will be unable to file its financial statements and management's discussion and analysis for the quarter ended June 30, 2011 prior to the filing deadline of August 29, 2011.

Healthscreen has recently become aware that its financial statements for prior periods are likely materially misstated, specifically with respect to reported accounts and unbilled receivables. At the present time, Healthscreen is not in a financial position to devote adequate resources to determine the extent of any misstatement or whether any misstatement may affect other elements of prior period financial statements or to prepare revised financial statements for such periods if necessary.

Accordingly, Healthscreen advises that its financial statements for the years ended September 30, 2010 and September 30, 2009 and the auditors' report thereon dated February 10, 2011, the interim financial statements for the periods ended March 31, 2011 and December 31, 2010 and the management's discussion and analysis for all such periods should not be relied upon.

Healthscreen is uncertain, at this time, as to when it will be in a position to provide additional information about prior period misstatements or to file the financial statements and management's discussion and analysis for the quarter ended June 30, 2011 or revised statements for any prior periods. Healthscreen's ability to do so will depend on its financial position and resources and whether it is able to obtain additional funding, which it may not be able to do.

As previously announced, Healthscreen's major secured creditor has issued a demand for repayment and a notice of intention to enforce security to Healthscreen on August 18, 2001 providing Healthscreen with a 20 day notice period.

Healthscreen intends to satisfy the provisions of the alternative information guidelines (as such term is used in National Policy 12-203 – Cease Trade Orders for Continuous Disclosure Defaults), as applicable, so long as it remains in default.

About Healthscreen Solutions Inc.:

Healthscreen Solutions Inc. ( provides a comprehensive suite of practice enhancing products and services to increase physician productivity and revenue while reducing costs and improving patient care. The Company's portfolio includes billing and scheduling software, electronic medical records software, CallerMD which assists physicians in managing a range of uninsured medical services, PrevCareMD which helps physicians earn supplemental income by achieving government-set preventive care targets and HealthAlert which allows physicians to help their patients in managing complex healthcare issues. Healthscreen's services and software are used by over 5,000 full-time physicians who are responsible for the health care of more than five million Canadians.

Disclaimer: Forward Looking Statements

This press release contains information that is forward looking information with respect to Healthscreen within the meaning of Section 138.4(9) of the Ontario Securities Act and other applicable securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or the negative of these terms or other similar expressions concerning matters that are not historical facts. In particular, statements about future revenues or profitability, including the estimated timing of profitability, and any other statements regarding Healthscreen's future expectations, beliefs, goals or prospects are or involve forward-looking information.

Forward-looking information is based on certain factors and assumptions. While Healthscreen considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking information, by its nature necessarily involves risks and uncertainties, including risks and uncertainties relating to government regulation and funding in the healthcare industry, financial and capital market risks, technology development and adoption, Healthscreen's ability to maintain its competitive position and effectively implement its acquisition strategy, liability for software malfunction, management of growth, and length of sales cycles. Additional risks and uncertainties affecting Healthscreen can be found in Healthscreen's 2010 Annual Report and Management's Discussion and Analysis for the Fiscal Year ended September 30, 2010 filed on SEDAR at If any of these risks or uncertainties were to materialize or if the factors and assumptions underlying the forward-looking information were to prove incorrect, actual results could vary materially from those that are expressed or implied by the forward-looking information contained herein. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. Trading in the securities of Healthscreen should be considered highly speculative.


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