BROSSARD, QUEBEC--(Marketwire - November 17, 2010) - Biotonix (2010) Inc. (TSX VENTURE: BTX) ("Biotonix"), a leader in postural health and fitness, today announced the financial results for the third quarter ended September 30, 2010, and a review of its activities.
The company recently announced a first closing of $295,999 of its $1.4 million non-brokered private placement previously announced on October 21, 2010, and a first closing of $651,201 of its $1.0 million brokered private placement previously announced on October 5, 2010. The two placements will total a maximum of up to $2 millions.
"We pursued our sales efforts in the fitness and sports markets which have yielded results. We will be kicking-off this month our pilot project with the leading U.S. upscale fitness and health chain Equinox for a first implementation of a custom Fitprint™ solution , said Louise St-Onge, CEO of Biotonix which could lead to greater scale implementation in 2011 across their 50 clubs in the U.S.. Club Med Gym, the company's first European fitness client initiated implementation within its fitness chain. Furthermore, we are also currently implementing a Posture Correction program within one of the Fortune 500 Corporations", she continued.
"In addition, we have prioritized our R&D initiatives which will result in an additional product offering for enterprises, a tailored suite of web-based health solutions designed to support their initiatives in improving employees' wellness in the workplace, added Mrs. St-Onge. "Several studies demonstrate a significant ROI for enterprises who invest in their employees' wellness. We believe enterprises represent a high value market segment for us as Biotonix products are specifically geared towards prevention and improving fitness levels and posture, preventable causes of musculoskeletal afflictions," she concluded.
THIRD QUARTER 2010 HIGHLIGHTS
-- On November 2, Biotonix announced a first closing of $ 295,999 of its
$1.4 million non-brokered private placement of units previously
announced on October 21, 2010, and a first closing of $651,201 of its
$1.0 million brokered private placement of units with Industrielle
Alliance Securities Inc. previously announced on October 5, 2010.
-- Participation in key industry tradeshows such as Can-Fit-Pro Toronto
(Aug.13-14), Club Industry National Conference (Oct.6-8) and PGA Golf
Merchandise Show (Oct 27-28) resulted in promising business leads.
-- On November 2, Biotonix concluded an agreement with Equinox, an upscale
fitness and health chain, for a pilot project to implement a custom
-- Further to a review of R&D priorities and management's anticipated
demand for certain types of products, R&D efforts have been redeployed
with an emphasis on those projects that meet the demand criteria and
have a shorter term time to market.
SELECTED FINANCIAL INFORMATION
Three months ended September 30
Net loss (443 719)
Management is executing to the strategy articulated in connection with becoming a public company. Business development activities are focused on meetings and product demonstration with potential clients and lead generation in the sports, healthcare and fitness and enterprise markets but haven't yet translated into revenue for the Company. Sales and marketing expenses have increased to support these business development activities. While new contracts with customers have been signed, it is estimated based on past experience and implementation requirements, that there is an approximate lag-time of six months before the new contracts start to generate revenue.
Furthermore, as a result of the strengthening of the Canadian dollar with respect to the US$, revenue was negatively affected by approximately 11%. Deferred revenue during the quarter arose as a result of a license agreement which recognized as revenue in equal increments over a period of 12 months.
On the basis of current projections and the recent private financing completed, management believes the Company will have sufficient funds available to support its activities for the next twelve months.
WEB-BASED SOLUTIONS FOR POSTURE CORRECTION AND FITNESS
Biotonix has developed a unique biomechanical evaluation system and method which is at the core of all its applications. The system helps health and fitness professionals to assess, improve and monitor posture and overall fitness. The Biotonix web-based imaging software system is easy to use, non-invasive and provides a complete individualized assessment of musculoskeletal form and function, postural deviation detection, and corresponding corrective exercises. To date, the Company has generated over 375,000 postural and fitness assessments, including over 1,000 world-class athletes.
Designed to meet the specific needs of the fitness market, FitPrint™ has the capability to assess posture as well as establish physiological age in order to improve muscular balance, performance and overall fitness, and rejuvenate the body.
Biotonix recently concluded an agreement for the implementation of a custom Fitprint™ solution with upscale fitness and health chain Equinox which could lead to greater scale implementation of the FitPrint™ solution in 2011 across their 50 clubs in the U.S.
The Company is currently in discussions with other fitness organizations and expects to conclude some agreements before year-end.
2010 THIRD QUARTER RESULTS AVAILABLE
The quarterly unaudited interim financial statements and management's discussion and analysis for the three and nine months periods ended September 30, 2010, of Biotonix (2010) Inc., compared to the unaudited quarterly financial results for the three and nine months periods ended September 30, 2009 of the private company 32527326 Canada Inc. (formerly Biotonix Inc.), following the March 18, 2010 reverse takeover are available on Biotonix's website at www.biotonix.com as well as on the SEDAR website at www.sedar.com
Biotonix (TSX VENTURE: BTX) offers innovative health solutions for posture correction and fitness using a web-based imaging software technology. Biotonix is currently developing novel orthotics for the back and foot, also geared specifically toward improving posture. For more information please visit www.biotonix.com or www.golfprint.ca
BIOTONIX'S FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. There is a risk that expectations and forward looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on these forward looking statements as they involve risks and uncertainties, which could make actual results differ materially from those projected herein and depend on a number of factors including, but not limited to, no history of profitability, future financing, intellectual property and patents, key personnel, competitive marketplace, technology obsolescence, share price volatility and other risks detailed from time to time in the Company's filings. While Biotonix anticipates that subsequent events and developments may cause its views to change, Biotonix specifically disclaims any obligation to update these forward looking statements, unless obligated to do so by applicable securities laws
Neither 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.