WESTBURY, N.Y.--(BUSINESS WIRE)--Vasomedical, Inc., (“Vasomedical”) (OTC: VASO.OB), a leader in the noninvasive treatment and management of cardiovascular diseases, announced today that it has entered into an alliance and business arrangement with Living Data Technology Corporation and its affiliates (“Living Data”) in which Kerns Manufacturing Corp. (“Kerns”), an affiliated company of Living Data, made a $1.5 million equity investment in Vasomedical through the purchase of common stock. In addition, Vasomedical has an option to sell an additional $1.0 million of its common stock to Kerns, subject to certain terms, restrictions and conditions. Vasomedical and Living Data have also entered into agreements that grant Vasomedical exclusive right to market and distribute Living Data’s external counterpulsation (ECP) systems in the United States and grant Living Data exclusive right to manufacture and supply products to Vasomedical. The arrangement also provides for the appointment of two representatives of Living Data to Vasomedical’s Board of Directors, including Simon Srybnik, Chairman of both Kerns and Living Data.
“This transaction offers us the opportunity to expand our patient base for this important medical treatment,” remarked Vasomedical’s newly appointed president and chief executive officer Dr. John CK Hui. “With the new capital infusion, together with our recently restructured management team, plus the addition of Living Data and Kern’s business expertise, we can begin to execute a new marketing and sales plan. It is our goal in the coming months to achieve greater market penetration, to demonstrate renewed revenue growth, and to increase shareholder value.”
“We are extremely excited about the future of Vasomedical,” remarked Mr. Abraham E Cohen, chairman of the Board of Directors of Vasomedical. “With additional capital, a new strategic alliance partner who has proven expertise in the innovative mobile ECP system from Living Data, combined with our existing products with proven clinical effectiveness, we are ready to expand our market and continue to be the leader of this noninvasive, effective, and cost efficient therapy for patients suffering from ischemic heart disease.”
“I am a true believer in external counterpulsation therapy, and I have personally benefited from using this noninvasive treatment regime,” commented Mr. Simon Srybnik. "This alliance of two companies with great track records will create a synergy that combines the engineering and manufacturing expertise of Living Data with the leadership and reputation of Vasomedical, a company well qualified to market a product that is needed to prolong and improve the quality of life for patients across a broad spectrum of debilitating illnesses. I am confident that together we can bring the best products and services to the market, while at the same time increasing shareholder value. Vasomedical is a pioneer in the field and offers the only clinical evidence-based line worldwide. We will support Vasomedical as it expands its market presence and leadership and are open to exploring additional acquisitions and other strategic relationships.”
For additional information, please refer to Vasomedical's current report on Form 8-K to be filed with the Securities and Exchange Commission with respect to this transaction.
About Vasomedical, Inc. and EECP® Therapy
Vasomedical, Inc. develops, manufactures and markets EECP® therapy systems to deliver its proprietary form of enhanced external counterpulsation therapy. EECP® therapy is a noninvasive, outpatient therapy used in the treatment of ischemic cardiovascular diseases, currently used to manage chronic stable angina and heart failure. The therapy increases blood flow and oxygen supply to the heart muscle and other organs and decreases the heart's workload and need for oxygen. Function of the endothelium, the inner lining of blood vessels throughout the body, is also improved, lessening resistance to blood flow. These actions reduce or eliminate symptoms of angina and heart failure, and improve exercise performance and quality of life for thousands of people worldwide. For more information visit www.vasomedical.com.
About Living Data Technology Corporation and AngioNew® ECP Systems
Living Data Technology Corp. is a New York based private company that develops and markets AngioNew® external counterpulsation (ECP) systems for non-invasive treatment of cardiovascular diseases such as angina and CHF. Its ECP systems are the only automated ones in the world to deliver effective and consistent treatment without operator intervention, therefore significantly reducing operational demand and training requirements. Living Data offers cost effective and quality products from its China based production facility, which is ISO 9001 and ISO 13485 certified, and in full compliance with cGMP.
Currently Living Data Technology offers two ECP models. AngioNew® V is a mobile system that can be wheeled around to treat patients on any bed or recliner; it does not require a dedicated treatment table or treatment room. AngioNew® VI is a table based system of one-piece construction, suitable for use in treatment rooms with steady patient flow. Both AngioNew® systems are US FDA cleared and CE Mark certified. Living Data Technology Corp. has successfully marketed and installed AngioNew® systems in the United States as well in many countries in Europe and Middle and Far East. For more information visit www.angionew.com.
About Kerns Manufacturing Corp.
Kerns Manufacturing Corp. has been a prime tier one manufacturer of aircraft and rocket engine components and subassemblies for over 50 years. Its products are complex critical components vital to the safe and continuous operation of both commercial and military aircraft and rocket engines, therefore demanding the highest standards of quality assurance for excellence and precision. Kerns customer base includes General Electric, Pratt & Whitney, SNECMA in France, MTU in Germany, ITP in Spain as well as the U.S. Government. It also operates with joint ventures and partners in India and China. For more information visit www.kernsmfg.com.
Except for historical information contained in this release, the matters discussed are forward-looking statements that involve risks and uncertainties. When used in this report, words such as “anticipated”, “believes”, “could”, “estimates”, “expects”, “may”, “offers”, “plans”, “potential” and “intends” and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company's management, as well as assumptions made by and information currently available to the Company's management. Among the factors that could cause actual results to differ materially are the risk factors reported from time to time in the Company's SEC reports, including the ability of the Company to continue as a going concern. The Company undertakes no obligation to update forward-looking statements as a result of future events or developments.