Simavita Limited
ASX : SVA
TSX VENTURE : SV

Simavita Limited

July 30, 2015 18:51 ET

Simavita Limited: North American Sales and Marketing Update

SYDNEY, AUSTRALIA--(Marketwired - July 30, 2015) - Simavita Limited (TSX VENTURE:SV)(ASX:SVA) -

Highlights:

  • New SIM™ business model in place and well accepted, with first customer agreements in place and further contracts in pipeline.
  • Two Canadian distribution partners appointed following the successful signing of first Canadian customers.
  • Simavita executes addendum agreement with Medline, modifying the exclusive distribution rights of Medline and extending US sales reach for Simavita's Smart Incontinence Management (SIM™) platform.

Simavita Limited ("Simavita" or the "Company"), a global leader in the digital healthcare sector, is pleased to provide an update on recent changes to its North American sales and marketing strategy, and an update regarding the sale and distribution of the Company's Smart Incontinence Management (SIM™) platform in Canada.

SaaS model roll out

Simavita has initiated the roll out of its "Software as a Service" (SaaS) business model. Under this new model, customers now contract with Simavita on an annual basis for the ability to use SIM™ throughout that year. Each customer pays a fixed, monthly or quarterly fee for which it receives access to Simavita's proprietary software, together with an agreed number of assessments and the accompanying hardware. Additional assessments and other consumables may be purchased, as needed, from Simavita separately at an agreed price.

The SaaS model provides customers with the benefits of a regular, predictable, all-encompassing fee for SIM™, enabling them to include the associated costs into their budgetary framework with a greater degree of certainty. For many customers, this model has the added advantage of being similar to the way in which they purchase other services used in the long-term care industry and has been well received.

The SaaS model provides Simavita with a contracted and predictable revenue stream that will increase as additional customers sign up for the use of SIM™.

To better support North American distribution under the SaaS model, Simavita has now established a core team of experienced sales and marketing professionals in the US, led by Chris Southerland, V.P. Sales and Marketing.
Simavita is pleased to announce that it has now executed agreements with its first US and Canadian customers under the new SaaS model. Negotiations with other potential customers are underway as the Company's North American sales pipeline continues to grow.

Appointment of new Canadian distribution partners

Simavita has recently executed binding terms sheets with two Canadian distribution partners: Medline Canada Corporation of Oakville, Ontario (an associate of Medline Industries, Inc.) and MedProDirect Inc., of Mississauga, Ontario. These appointments follow the successful signing of the Company's first Canadian customers.

Under these agreements, each of the distributors has been granted non-exclusive rights to sell and distribute SIM™ in the Canadian market. In order to commence the sales and marketing process, Medline Canada will place an initial order of SIM™ products.

"We are very pleased to have signed agreements with Medline Canada and MedPro that will enable us to start the sale and distribution of SIM™ in the significant Canadian aged care market," said Mrs. Lewis.

Medline Industries, Inc.

In order to more rapidly and widely deploy SIM™ in the US market, Simavita and Medline have agreed to vary their distribution agreement such that Medline will transition to a non-exclusive distribution arrangement. While the distribution relationship with Medline will continue to be an important one for Simavita, this transition will allow Simavita to also commence independent sales and marketing activities immediately, and also to engage with additional third party distributors over time.

Simavita CEO, Philippa Lewis commented "Simavita and Medline have worked hard to ensure that this variation to our distribution agreement continues to deliver value to both companies and their customers. By introducing the ability for Simavita to sell directly into the market, we are able to supplement Medline's efforts and will be better placed to roll out more contracts across the massive US market. We are confident that the revised agreement is good for both parties."

Audio commentary

Investors interested in hearing Simavita's CEO, Philippa Lewis, discuss the topics covered in this announcement are invited to listen to an audio recording, which is available by copying the following link into your browser:

http://brrmedia.com/event/140002

For further information, see our website (www.simavita.com) or contact the persons outlined below.

About Simavita

Simavita is a digital healthcare company that has developed an innovative software platform. The first application for the platform is a world first solution for the management of urinary incontinence, with a focus on the elderly. This platform technology is an instrumented incontinence assessment application that provides evidence-based incontinence management care plans to the residential aged care market.

About SIM

SIM™ is a wireless sensor technology that delivers evidence-based instrument incontinence data on individuals. SIM™ provides user friendly tools and software to assess the incontinence condition and to help plan better outcomes. SIM™ is used to detect, record and report incontinence events during a compulsory or recommended assessment period in residential aged care facilities to develop an evidence-based incontinence care plan.

Conducting assessments is mandatory in many countries and the incontinence assessment creates an influential element of care of each individual. For more information on Simavita or SIM™, please visit www.simavita.com.

The TSX Venture Exchange ("TSX-V") has in no way passed upon the merits of the transactions set out herein and has neither approved nor disapproved the contents of this press release. Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this Release.

Except for historical information, this announcement may contain forward-looking statements that reflect the Company's current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause, but are not limited to, the anticipated date of on the ASX, changing market conditions, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process, and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting.

Forward-Looking Information

This document may contain "forward-looking information" within the meaning of Canadian securities laws ("forward-looking information"). This forward-looking information is given as of the date of this document.

Forward-looking information relates to future events or future performance and reflects Simavita management's expectations or beliefs regarding future events. Assumptions upon which such forward-looking information is based include that Simavita will be able to successfully execute on its business plans. Many of these assumptions are based on factors and events that are not within the control of Simavita and there is no assurance they will prove to be correct.
In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "potential", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or information that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By its very nature forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Simavita to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, risks related to actual results of current business activities; changes in business plans and strategy as plans continue to be refined; other risks of the medical devices and technology industry; delays in obtaining governmental approvals or financing or in the completion of development activities; as well as those factors detailed from time to time in Simavita's interim and annual financial statements and management's discussion and analysis of those statements. Although Simavita has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Simavita provides no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.

Contact Information

  • Simavita Limited
    Philippa Lewis
    Chief Executive Officer
    +61 2 8405 6381

    Simavita Limited
    Thomas Howitt
    Chief Financial Officer
    +61 418 351 127

    Simavita Limited
    Media and Investor Relations
    Jane Lowe
    jane.lowe@irdepartment.com.au
    +61 411 117 774
    www.simavita.com