Terms Enable Diversinet to Freely Market Secure Mobile
Healthcare Applications Worldwide
TORONTO, June 18 /PRNewswire-FirstCall/ - Diversinet Corp.
(TSX Venture: DIV, OTCBB: DVNTF), a leading innovator of secure
mobile healthcare applications, has reached a settlement with
AllOne Mobile Corporation ("AllOne") and its parent company, AllOne
Heath Group, Inc. ("AHG"), which were seeking the termination of
the parties' September 2008 license
and revenue sharing agreement (the "License Agreement"). All dollar
amounts are in U.S. dollars.
According to the terms of the settlement agreement, AllOne will
pay Diversinet $4,000,000 to
terminate the License Agreement, including any future revenue
sharing obligations. Diversinet will also retain complete ownership
and control over its related intellectual property developed during
the term of the License Agreement.
Additionally, the parent company of AHG, Hospital Service
Association of Northeastern
Pennsylvania, d/b/a Blue Cross of Northeastern Pennsylvania ("HSA"), will return
to Diversinet all of the common shares of Diversinet it currently
owns, totalling 6,956,152 shares.
HSA had acquired 6,756,757 shares of Diversinet common stock in
a private placement completed in August
2007. The offering was priced at $0.74 per share, for gross proceeds of
$5,000,000 to Diversinet.
Pro forma of the successfully executed settlement agreement,
Diversinet expects to have more than $14
million in cash and cash equivalents and approximately 41.7
million in common shares outstanding and 47.4 million fully
diluted.
"We are pleased with the terms of the settlement," said
Albert Wahbe, Diversinet's chairman
and CEO. "This resolution will now allow us to proceed freely to
execute our go-to-market strategy, which focuses on providing
feature-rich mobile applications that securely connect and protect
people with their healthcare information, providers and payers -
anytime, anywhere. While AllOne has decided to change its strategic
focus, we are thankful for their support over the years."
Diversinet's increased emphasis on mobile health, announced in
March, includes these key elements:
- Introducing new products and product enhancements matched to the
needs of the mHealth industry.
- Creating customized portals to support mobile health applications for
physicians and healthcare providers to deliver better care at lower
cost.
- Expanding Diversinet's network of healthcare partners and providing
new partners a model that offers trials with minimal commitment.
AllOne License Agreement Background
In September 2008, Diversinet
entered into the License Agreement with AllOne, a wholly owned
subsidiary of AHG, which in turn is a wholly owned subsidiary of
HSA, to cross-license certain software and share revenues from the
worldwide sales. Under the terms of the License Agreement,
Diversinet provided an exclusive worldwide right to AllOne to
sub-license certain Diversinet software in combination with
AllOne's software in the mobile personal health record market.
As of May 2010, HSA owned
6,956,152 common shares of Diversinet, representing approximately
14.5% of the issued and outstanding common shares of Diversinet.
These common shares will be returned to Diversinet for cancellation
as part of the settlement agreement.
About Diversinet
Diversinet Corp. (TSX Venture: DIV, OTCBB: DVNTF) provides the
healthcare industry with applications that securely connect people
with their healthcare information, providers and payers - anyway,
anytime and anywhere. Diversinet's reliable, end-to-end MobiSecure
platform offers global, secure and cost-effective applications to
meet rapidly growing needs for mobile personal health records.
Connect with Diversinet Corp. at www.diversinet.com. Healthcare.
Connected and Protected.
The Private Securities Litigation Reform Act of 1995 and
Canadian securities laws provide a "safe harbour" for
forward-looking statements. Certain information included in this
press release (as well as information included in oral statements
or other written statements made or to be made by the company)
contains statements that are forward-looking, such as statements
relating to the success of current product offerings. Such
forward-looking information involves important risks and
uncertainties that could significantly affect anticipated results
in the future and, accordingly, such results may differ materially
from those expressed in any forward-looking statements made by or
on behalf of the company. For a description of additional risks and
uncertainties, please refer to the company's filings with the
Securities and Exchange Commission available at www.sec.gov and
Canadian securities regulatory authorities available at
www.sedar.com.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
MobiSecure is a registered trademark of Diversinet Corp. All other
marks are the property of their respective owners.
SOURCE Diversinet Corp.