ZoomMed inc.

ZoomMed inc.

April 13, 2007 14:51 ET

ZoomMed Inc. Announces the Pricing for its $5,000,000 Marketed Private Placement to Launch its Ontario Market Strategy

MONTREAL, QUEBEC--(CCNMatthews - April 13, 2007) - ZoomMed Inc. (TSX VENTURE:ZMD) is pleased to announce that, in conjunction with Loewen, Ondaatje, McCutcheon Limited, the lead Agent, it has fixed the pricing of its previously announced marketed private placement of units for gross proceeds of up to $5,000,000.

Each unit will be issued at a price of $0.30 and will consist of one common share and one half common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share at a price of $0.45 for a period of 24 months.

Under the terms of the offering, up to 16,666,666 shares and 8,333,333 whole warrants may be issued, subject to an Agent's option to increase the size of the offering by up to 20% for an additional 3,333,333 units, representing an equal number of shares and 1,666,666 additional whole warrants.

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 18 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 to occur on or about April 23, 2007.

The net proceeds of this private placement will be used for further corporate development and marketing strategy in Ontario and for general working capital purposes. The "ZRx Prescriber" has been on the market in Quebec and we are presently on target with its implementation strategy. On the strength of these positive results, ZoomMed Inc. clearly intends to reinforce, as planned, its marketing strategy on the Ontario market. "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 no 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 accept responsibility for the adequacy or accuracy of this release.

Contact Information

    Yves Marmet
    President and Chief Executive Officer