Transaction strengthens Nightingale's balance
sheet and positions Company to focus on driving growth in
Canada and International
markets
MARKHAM, ON, Oct. 13, 2015 /CNW/ - Nightingale Informatix
Corporation ("Nightingale" or the "Company") (TSX-V:
NGH), announced today that it has completed the sale of its US
based Practice Management business, the "Business", to Pulse
Systems, a leading provider of Practice Management and EHR software
and Revenue Cycle Management services in the United States. Gross proceeds from the
sale are $11 million, less
$3 million of holdbacks.
The Business represented approximately 35% of Nightingale's
revenue for its fiscal year 2015. The Balance of Nightingale's
business will be in Canada and the
International markets focused on Nightingale's flagship products V9
(Nightingale On Demand) and Nightingale V10. Nightingale will
maintain the rights to develop, sell, and deploy its clearinghouse
and claims hub technology (known as SecureConnect) in Canada and all international markets outside
the United States.
"With a stronger balance sheet and complete focus on our core
markets, Nightingale can now dedicate its attention on the EMR
business which has grown 17% and 23% in fiscal years 2015 and 2014
respectively. Our objective now is to improve on those growth rates
and achieve profitability from recurring revenues in the short
term," said Sam Chebib, President
and CEO of Nightingale. "This transaction also aligns Nightingale's
operating cost and debt service with the cash flows from its
revenues, providing better predictability of our financial
performance. We are now well positioned to capitalize on multiple
large opportunities in the Canadian and International markets, to
drive tangible growth."
Under the terms of the sale, Nightingale could receive a
one-time additional payment of $1.75
million, if the Business meets certain financial targets by
March 31, 2016.
In conjunction with the sale, Nightingale entered into a mutual
non-competition agreement with Pulse for a period of three years,
whereby Nightingale would not compete in the United States market, while Pulse would
not compete in Canada.
About Nightingale
For more than a decade, Nightingale (TSX-V: NGH) has been
delivering innovative cloud-based Electronic Health Record (EHR) ,
Practice Management and Claims Clearing House solutions to
healthcare organizations across the United
States and Canada. Our goal is to uncomplicate the
day-to-day challenges of healthcare providers. We achieve this by
creating software that is truly intuitive—minimizing training and
maximizing adoption. We believe so strongly in building easy-to-use
software that we structured our entire product team around
user-centric design. Our clients are benefiting from this focus
through a well-supported and robust solution that presents a
holistic view of a person's well-being in a simple, clean
interface, so that the best health decisions can be made.
Nightingale – One Patient. One
Record. www.nightingalemd.com
Forward Looking Statement
This press release contains "forward-looking statements"
respecting the Company's financial position and the sale of assets
of the Corporation within the meaning of applicable Canadian
securities legislation. Generally, forward-looking statements can
be identified by the use of forward- looking terminology such as
"plans", "expects" or "does not expect", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may" ,"could",
"would", "might", "occur" or "be achieved".
Forward-looking statements are subject
to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of Nightingale to be
materially different from those expressed or implied by such
forward- looking statements, including but not limited to: the
ability of Nightingale to receive the additional payment from the
sale of assets to Pulse; the ability of Nightingale to service the
interest on its debt and to repay the principal on its debt; risks
associated with obtaining the required approval of the Exchange and
other approvals related to its debt; the ability of Nightingale to
successfully complete the strategic or financial alternatives being
considered; risks related to the speculative nature of the medical
software industry, which is affected by numerous factors beyond
Nightingale's control; the ability of Nightingale to successfully
secure customer contracts and the timing of securing such
contracts; the ability of Nightingale to successfully develop and
market the V10 platform; Nightingale's access to debt and capital
facilities, including compliance with current debt
arrangements; the existence of present and possible future
government regulation; the significant competition that exists in
the medical software industry; the early stage of Nightingale's
business, and risks associated with early stage companies,
including uncertainty of revenues, markets and profitability and
the need to raise additional funding. All material assumptions used
in making forward-looking statements are based on management's
knowledge of current business conditions and expectations of future
business conditions and trends. Certain material factors or
assumptions applied by management in making forward-looking
statements, include without limitation, factors and assumptions
regarding future trends in healthcare spending, economic conditions
affecting Nightingale and North American economies; Nightingale's
ability to continue to fund its business, rates of customer
defaults, relationships with, and payments to lenders, as well as
Nightingale's operating cost structure.
Although Nightingale has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. Nightingale does not undertake to update any
forward-looking statements that are incorporated by reference
herein, except in accordance with applicable securities laws.
Further information on Nightingale Informatix Corporation is
available at www.sedar.com.
Neither the 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.
SOURCE Nightingale Informatix Corporation