ZoomMed inc.

ZoomMed inc.

March 21, 2007 16:00 ET

ZoomMed Announces a $5,000,000 Private Placement to Launch its Ontario Market Strategy


"ZoomMed" (TSX VENTURE:ZMD) ZoomMed Inc. is extremely pleased to announce an agreement with Loewen, Ondaatje, McCutcheon Limited in Toronto, as lead Agent, to raise up to $5,000,000 by way of a marketed private placement of units comprising one common share and one half common share purchase warrant, each whole warrant comprising one common share. Pricing of the offering will be determined in the context of the market.

The Agents will receive a cash fee equal to 7.5% of the gross proceeds raised from the placement, as well as broker's warrants, exercisable for a period of 24 months, to purchase a number of common shares equal to 7.5% of the number of units sold.

Completion of the private placement is subject to certain conditions, including satisfactory due diligence by the Agent and receipt of all necessary regulatory approvals. Closing of the private placement is expected on or about April 18, 2007.

The net proceeds of this private placement will be used to further corporate development and marketing strategy in Ontario and for general working capital purposes. ZRx Prescriber has been on the market in Quebec for only four months. We are presently on target with our implementation strategy and we clearly intend to reinforce our marketing strategy in the Ontario market as planned. "By the end December 2007, we anticipate that medical transactions on the ZRx Prescriber in Ontario will be contributing to our revenues" said Yves Marmet, President and CEO of ZoomMed.

ZoomMed has developed a new electronic tool, aiming at changing the way drugs are prescribed and dispensed throughout Canada. The ZRx Prescriber allows physicians to complete and send prescription information to pharmacists, allowing them to view this information on-line, specifically by reading the unique barcode of the prescription, and confirm it with a copy signed, by the attending physician. This user friendly Web product, designed for doctors, uses the latest "Pocket Pc" technologies.

The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the benefit of U.S. persons except in certain transactions exempt from the registration requirements of such Act. This news release shall not constitute an offer to sell nor the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

Disclosure regarding forward-looking statements: This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Corporation. These risks and uncertainties could cause actual results and the Corporation's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Corporation assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

The TSX Venture Exchange does not assume any responsibility as for the relevance or with the exactitude of this press release

Contact Information

  • ZoomMed Inc.
    Yves Marmet
    President and Chief Executive Officer
    450-678-5457 ext. 228