ZoomMed Inc.
TSX VENTURE : ZMD

ZoomMed Inc.

September 30, 2011 08:45 ET

ZoomMed Announces the Closing of a Private Placement of $1.5 Million

MONTREAL, QUEBEC--(Marketwire - Sept. 30, 2011) - ZoomMed Inc. (TSX VENTURE:ZMD) (the "Corporation") announces the closing of a private placement of a secured convertible debenture and warrants for a total amount of $1,500,000, subject to the final approval of the TSX Venture Exchange and others regulatory authorities. The agent appointed for this private placement was Avenue Capital Markets Inc., an arm's length party.

"After robustly developing the Prescriber ZRx and investing to build the platform for exchange of information most used by Canadian doctors, it is time to turn to the lucrative American market. In a context where the timing is extremely conducive to the strategic positioning of ZoomMed in the United States, we decided to get additional funding", said Mr. Yves Marmet, President and Chief Executive Officer of the Corporation.

A secured convertible debenture (the "Convertible Debenture") was issued for a principal amount of $1,500,000, such Convertible Debenture being convertible at the sole option of the holders thereof into common shares of the share capital of the Corporation (the "Common Shares") on the basis of one common share for each $0.15 in principal amount of Convertible Debenture. Furthermore, 10,000,000 Common Shares purchase warrants (the "Warrants") were issued. Each Warrant entitles the holder thereof to purchase one common share at a price of $0.15 per share for 24 months following the closing date.

The Convertible Debenture matures 24 months from the date of issuance or such earlier date which may be provided for as a redemption feature. Subject to certain conditions, the Corporation may redeem all or any portion of the Convertible Debenture upon 30 days written notice to the holders thereof in which case such holders may exercise their conversion rights, in whole or in part, prior to the intended date of redemption. The Convertible Debenture bears interest at a rate of 15% per annum. The Convertible Debenture is secured by a charge on the assets of the Corporation and a promissory note.

Avenue Capital Markets Inc., a Montreal-based Exempt Market Dealer, acted as agent for this private placement and received a cash fee equivalent to 10% of the gross proceed of the private placement.

About ZoomMed

ZoomMed's developed the ZRx Prescriber, a technological innovative Web application that enables physicians to use a wireless device, such as the IPod Touch™, IPhone™, IPad™, Google Android™, other PDA's or computers, to write and rapidly deliver scripts. The ZRx Prescriber is quick, efficient and intuitive. Since it is a stand-alone product, it can easily be integrated to any Electronic Medical Record application (EMR). Furthermore, ZoomMed also offers "PraxisLab" a new application that enhances all aspects of the prescription filling process and the complete pharmacists patient file management. PraxisLab uses state-of-the-art protocols and up-to-date software standards, allowing high compatibility with existing software, as well as new generation software.

About Avenue Capital Markets

Avenue Capital Markets Inc. is an independent exempt market dealer dedicated to supporting the growth of small to mid cap companies located primarily in Quebec. Avenue provides dynamic entrepreneurs with access to capital markets, corporate advisory services and experienced mentor networks.

For further information about Avenue Capital Markets, please visit our Web Site: www.avenuecapitalmarkets.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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