The Medipattern Corporation

The Medipattern Corporation

May 18, 2010 06:30 ET

Medipattern Closes $1.8 Million Note Financing

TORONTO, ONTARIO--(Marketwire - May 18, 2010) -

Attention: Business/Financial Editors

The Medipattern Corporation ("Medipattern" or the "Company") (TSX VENTURE:MKI), a pioneer in the development of medical software solutions that help improve imaging workflow and productivity, is pleased to announce that it has closed a $1,800,000 convertible note financing (the "Offering"). The notes issued in the Offering bear interest at 10% per annum, payable semi-annually, and will mature and be payable on January 1, 2015 (the "Notes"). Proceeds from the Offering will be used for the continued North American roll-out of its B-CAD-FOR-LIFE™ software service and to fund the final development and approval of Vascular-iQ™,  a detection, analysis, and data collection software tool Medipattern is creating in partnership with GE Healthcare for the global vascular market, as well as general corporate purposes.

The Notes and any accrued and unpaid interest are convertible at the option of the holder into common shares of the Company at a conversion price of $0.20 per share. The Company may convert the interest payable during the first year of the Notes into further principal amount of the Notes. The Company may also elect to settle any accrued and unpaid interest through the issuance of that number of common shares of the Company whose value is equal to 110% of the interest accrued at a price per common share equal to the closing price of the Company's common shares on the TSX Venture Exchange (the "Exchange") on the last trading day preceding the interest payment date, subject to a minimum of $0.10 per share. Following the second anniversary of the issuance of the Notes, the Company may redeem the Notes at a redemption price equal to the principal amount of the Notes plus all accrued and unpaid interest.

The principal amount of the Notes and any accrued and unpaid interest will be automatically converted to common shares of the Company in the event the Company's common shares trade at a 300% premium to the $0.20 strike price for a period of 30 consecutive days, at a conversion price of $0.20 per share. The conversion price of the Notes will be adjusted downward only in the event the Company issues or sells common shares or other equity like securities at a price below $0.20 per security, provided the adjustment may not result in a conversion price that is lower than $0.10 per share.

The Notes issued under the Offering are subject to a four month and one day resale restriction and the Offering is subject to approval of the Exchange. 

About The Medipattern Corporation

Medipattern® is a pioneer in the development of medical software solutions that help improve imaging workflow and productivity. Our first-to-market, award-winning B-CAD® advances breast ultrasound computer aided detection (CAD) by streamlining workflow and organizing information into a comprehensive patient record. Medipattern uses its Cadenza™ CAD Technology to power the digital conversion in medical communications. B-CAD automatically creates fully digital standardized worksheets and reports that make every practice more efficient, productive and ultimately more effective. For more information, please visit the Company's website at:

Cadenza™ is a trademark of The Medipattern Corporation. B-CAD® and Medipattern® are registered marks of The Medipattern Corporation. BI-RADS® is a registered trademark of the American College of Radiology.

Forward-looking statements

This document contains forward-looking statements relating to Medipattern's performance, operations, or business environment. These statements are based on what we believe are reasonable assumptions given currently available information and our understanding of Medipattern's current activities. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential," and similar expressions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or control. A number of factors could cause actual outcomes and results to differ materially from those expressed in forward-looking statements. These factors include but are not limited to those set forth in the Company's corporate filings, (posted at In addition, these forward-looking statements relate to the date on which they are made. The Company disclaims any intention or obligation to update or revise any forward-looking statements for any reason. Readers should not rely on forward-looking statements.

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.

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