Quantum International Income Corp.

Quantum International Income Corp.

February 18, 2016 18:01 ET

Quantum International Income Corp. Announces Commencement of Spine Surgeries at Centers for Special Surgery, Appointment of New CFO and Drawdown on Note Facility

TORONTO, ONTARIO--(Marketwired - Feb. 18, 2016) -


Quantum International Income Corp's. (the "Corporation") (TSX VENTURE:QIC)(TSX VENTURE:QIC.U) subsidiary, Centers for Special Surgery ("CSS"), is pleased to announce that spine surgeries have commenced at its ambulatory surgery center in Essex County, New Jersey, which is a joint venture between the Corporation and New York City Surgical Associates ("NYCSA"). A total of four procedures have been successfully performed to date by Dr. Arien Smith, Director, Neurological and Spine Surgery at NYCSA.

"We recently made an investment in spine equipment to support our physician partners in a surgical discipline with one of the highest expected reimbursement rates," commented Manu Sekhri, Chief Executive Officer of the Corporation, "and CSS expects this additional revenue stream to supplement the revenue being generated through surgical volumes in its vein practice."

Dr. Arien Smith, MD is a board certified and fellowship trained spine surgeon. His practice includes both adult and pediatric spinal disorders. Dr Smith has the rare combination of subspecialty training in both orthopedic and neurosurgical spine surgery for chronic, acute, and traumatic issues. He also brings to NYCSA his experience in pediatric deformity and scoliosis surgery.

Dr. Smith graduated from the Yale University School of Medicine in 2003. Prior to that, he received his B.A. in Biology & Spanish from the University of Rochester in New York. Dr. Smith's post-doctoral training includes a surgical internship at Mount Sinai Medical Center and a residency at Mount Sinai Medical Center Department of Neurosurgery. Subsequently, he completed a Fellowship at the Spine Institute of New York, Beth Israel Medical Center. Dr. Smith received the Novo-Nordisk Resident Research Award on Critical Care by the AANS/CNS Section on Neurotrauma and Critical Care in April 2007. He also completed research fellowships at the Howard Hughes Medical Institute and the Ronald E. McNair Medical Institute.

Separately, the Corporation announces today that Mr. Paul Andersen has been appointed to the position of Chief Financial Officer of the Corporation. Mr. Andersen is the managing partner of Forbes Andersen LLP, Chartered Professional Accountants, located in downtown Toronto, and has over twenty years of experience in senior management roles with both public and private companies. A graduate of the University of Toronto, Paul currently holds the Chartered Professional Accountant (Canada), Certified Public Accountant (United States), and Chartered Global Management Accountant (United States) designations.

The Corporation further announces today that its wholly-owned subsidiary Quantum US Healthcare Corp. (the "Borrower"), has completed a drawdown under its previously announced credit facility (the "Facility") in the principal amount of $110,000. Lenders under the Facility will receive senior secured exchangeable notes of the Borrower (the "Notes") in an equal principal amount. The funds advanced to the Borrower under the drawdown are expected to be used for general corporate and working capital purposes and to pursue potential acquisitions by the Corporation.

Additional terms of the Facility and the Notes may be found in the Corporation's press release of February 10, 2016.

The Notes issued pursuant to this drawdown bear an exchange price of $0.02 per common share, however such Notes will only be exchangeable at such price if the Corporation completes a consolidation of its common shares prior to any exchange of such Notes, pursuant to which all issued and outstanding common shares are consolidated by a factor of not less than 2.5 pre-consolidation common shares for 1 post-consolidation common share. If the Corporation does not complete such a consolidation, the Notes issued pursuant to this drawdown will only be exchangeable at an exchange price of $0.05 per common share in accordance with the minimum pricing rules of the TSX Venture Exchange. Any common shares issued upon exchange of any Notes will be subject to a statutory hold period expiring four months and one day following the issuance of such common shares.

In connection with this drawdown, the Borrower expects to pay finders and agents a cash commission equal to $11,000, of which $8,250 is expected to be paid in common shares of the Corporation valued at $0.05 per Common Share, as well as broker warrants to acquire 220,000 common shares of the Corporation at a price of $0.05 per common share at any time during the 12 months following the date of issuance of such broker warrants.

All issuances of Notes in consideration for advances under the Facility, as well as any satisfaction of interest payable on any Note through the issuance of additional common shares of the Corporation, is subject to approval of the TSX Venture Exchange.

More information on Quantum International Income Corp. is available at www.quantumincomecorp.com.

Neither 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.

Cautionary Statement Regarding Forward-Looking Information

This release contains certain information which, as presented, constitutes "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking information involves statements that relate to future events and often addresses expected future business and financial performance, containing words such as "expect" and "intend", statements that an action or event "may" or "will" be taken or occur, or other similar expressions and includes, but is not limited to, statements about the commencement of spine surgery at CSS, the expected reimbursement rates in connection with spine surgery, the continued growth in the number of spine surgeries, the new Chief Financial Officer, the Note Facility, the advances of loans and issuances of Notes thereunder, the granting of security to the collateral agent and the completion of any acquisitions. These statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Corporation to control or predict, and which may cause Quantum's actual results, performance or achievements to be materially different from those expressed or implied thereby, including, but not limited to, risks related to the inability by Quantum to acquire its own common shares for cancellation, as well as other factors discussed in the Corporation's annual information form dated July 23, 2015, (the "Annual Information Form") and the Corporation's final short form prospectus supplement dated July 21, 2015, which are available on SEDAR under Quantum's profile at www.sedar.com. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, in the Annual Information and Prospectus, and as otherwise disclosed from time to time on SEDAR under Quantum's profile at www.sedar.com.

Unless otherwise specified in this press release, information contained in this press release is current as of the date of this press release. Unless otherwise specified, all dollar amounts herein refer to Canadian dollars. The Corporation undertakes no obligation to update forward-looking statements except as may be required by applicable Canadian securities laws. Readers are cautioned against attributing undue certainty to forward-looking statements.

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