Prism Medical Ltd.
TSX VENTURE : PM

Prism Medical Ltd.

January 09, 2015 16:30 ET

Prism Medical Announces Acquisition of Assets of Angel Accessibility Solutions and Beka-Hospitec Distribution Rights

TORONTO, ONTARIO--(Marketwired - Jan. 9, 2015) - Prism Medical Ltd. ("Prism" or the "Company") (TSX VENTURE:PM), a leading provider of durable medical equipment and related services to the mobility challenged, announced today that its wholly-owned subsidiary, Angel Accessibility Inc. (the "Purchaser"), has acquired substantially all of the assets and business (the "Business") of Angel Accessibility Solutions Ltd. ("Angel Solutions"), a British Columbia-based provider of safe patient handling and elevating products and services.

The purchase price paid for the Business on closing was approximately $3,675,000, plus the assumption of certain debts of the Business by the Purchaser (subject to post-closing working capital and other adjustments). In addition to the purchase price paid on closing, there are potential earn-out payments dependent upon the achievement of agreed EBITDA targets of the Business over the next four years.

The purchase price paid at closing was satisfied through the payment of cash and the issuance of 79,186 common shares of Prism at a price of $8.84 per share (the "Prism Shares"). The Prism Shares are subject to a four month hold period pursuant to applicable securities laws and to a 12 month lock-up period pursuant to an agreement between the parties. As part of the transaction Prism acquired the exclusive Canadian rights, other than for Quebec and Atlantic Provinces, to distribute and service bathing, transfer and transport devices and hygiene products on behalf of Beka-Hospitec.

The acquisition of the Business is expected to be accretive to the earnings of Prism for the financial year ending November 30, 2015.

Andy McIntyre, the Chairman and Chief Executive Officer of Prism, said "Angel Solutions was our first Canadian dealer, a pioneer in the introduction of ceiling lifts and leading-edge moving and handling devices in western Canada. Over the years George Szwender developed an outstanding service ethos in this business based on a knowledgeable group of service providers passionate about solving problems and creating solutions to prevent injuries in healthcare workers and to assist the mobility disadvantaged, their caregivers, and funders. I believe that the combination of our two companies will allow us to better and more extensively service our North American customers, enter new product markets, and provide all our associates with greater work opportunities and personal development."

George Szwender, the President of Angel Solutions, added "I too see this combination as a positive step forward for Angel enhancing its service capabilities with positive benefits for customers, and expanding career opportunities for our knowledge workers. We all look forward to the challenges ahead as we work together to improve the lives of those we serve. As well, the high quality "Beka-Hospitec" line of bathing systems and patient floor lifts will be better developed across Canada with the utilization of Prism resources, better serving the long term care facilities that constitute the main customer base for this product line."

About Prism Medical Ltd.

Prism is a vertically integrated manufacturer and leading provider of equipment and services used to move and handle mobility challenged individuals in a safe and dignified manner. Prism's products are marketed under the brand names of Prism Medical, ErgoSafe, Waverly Glen and Nightingale in the homecare, acute care and long-term care markets throughout North America. The Company offers solutions that encourage improved care, quality of life and mobility, while seeking to lower the overall cost of the caregiving function in a number of ways, including reducing the incidence of handling-related injuries among caregivers. In addition, the Company through its network of Nightingale dealers provides an integrated suite of products and services that make home care a viable option for many people. For further information visit Prism's website at www.prismmedicalltd.com or www.sedar.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

This announcement may contain "forward-looking statements" within the meaning of applicable securities laws. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Prism to be materially different from those expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

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