BioTonix Announces Year End 2009 Results and 2010 Outlook
Published: Apr 22, 2010
BOUCHERVILLE, QUEBEC--(Marketwire - April 22, 2010) - Biotonix (2010) Inc. (TSX VENTURE: BTX) ("Biotonix") -
-- Closing of qualifying transaction and $2.5M financing, and commencement of trading on the TSX Venture -- Nomination of Richard Blais, B.Sc., L.Ph., and Livia Masnaghetti, CA, to the Board of Directors -- Creation of an Advisory Committee and conclusion of an agreement with hockey-legend Mario Lemieux -- 2010 outlook; double-digit growth in web-based software sales, new product launch for golfing and start of clinical trial for use of novel postural alignment tableBiotonix (2010) Inc. (TSX VENTURE: BTX) ("Biotonix"), a leader in postural health and fitness, today announced financial results for the 14-month period ended December 31, 2009, and 2010 outlook. On March 18, 2010, Capital Valmoris Inc. changed its corporate name to Biotonix (2010) Inc. On March 24, Biotonix (2010) Inc. ("Biotonix") shares began trading on the Toronto Venture Exchange (TSX-V) under the symbol BTX.
"The conclusion of the transaction and financing marked the debut of Biotonix, a private health solutions provider for posture correction and fitness, as a public entity. The Company will use these resources to grow its health transaction platform business and advance its orthotics R&D program," said Dr Sylvain Guimond, D.O., Ph.D., President of Biotonix. He added, "The Company also attracted highly knowledgeable and skilled individuals in their respective fields on its Board, Management team and Advisory Committee and I believe they will be instrumental in the development and long term success of Biotonix."
"2010 will be a busy year for Biotonix with marketing efforts geared towards fitness markets in North America, Europe and Japan, and a new product launch in golfing, with the goal of attaining a double digit-growth in web-based software solutions sales," said Louise St-Onge, CEO of Biotonix. "Furthermore, at the forefront of our R&D objectives will be the finalizing of the first prototype of Biotonix's postural alignment table which should be followed by the commencement of a clinical trial in the second half of 2010," she concluded.
Closing of qualifying transaction and $2.5M concomitant financing
On March 18, 2010, Capital Valmoris Inc. (a Capital Pool Company) announced the closing of the qualifying transaction with Biotonix Inc. and Sylvain Guimond and $2,500,000 public financing. Pursuant to the closing of the transaction with Biotonix Inc. and Guimond, Capital Valmoris issued 8,750,000 common shares at $0.40 per share, and 6,250,000 Units for a total consideration of $2,500,000, as per the terms and conditions of its final prospectus dated February 16, 2010.
At the conclusion of these transactions, Biotonix's cash position was $2,380,000. The funds will primarily be used to pursue Biotonix's current activities, as well as R&D efforts on orthotic technologies for the back and foot.
Leadership and endorsement by hockey-legend Mario Lemieux
Important changes took place in Biotonix's leadership with the nomination of new members to its Board of directors and Management team, and creation of an Advisory Committee. The Company also signed an endorsement agreement with hockey-legend Mario Lemieux, one of the principal owners and Chairman of the Pittsburgh Penguins, who will act as an official Biotonix spokesperson.
On April 21, 2010, Richard Blais, B.Sc., L.Ph., and Livia Masnaghetti, CA, joined the Board of Directors. The new Biotonix Board is now complete and includes W. Brian Edwards, Chairman of the Board, Richard Blais, Administrator and Co-owner of pharmacies, Francois Cote, EVP and President, TELUS Health Solutions and TELUS Quebec, Sylvain Guimond, President, Biotonix, Livia Masnaghetti, Financial Advisor, Groupe Aeroplan, Alain Morissette, VP, Business Development, Biotonix, and Sylvain Morrissette, President, PPD Group.
The management team has been significantly enhanced with the addition of Louise St-Onge as CEO, Francois Poulin as VP, R&D, Strategic Marketing and New Product Launches, and Julie M. Thibodeau as VP, Corporate Communications and Investor Relations.
An Advisory Committee has been created and is comprised of Mario Lemieux, one of the principal owners and Chairman of the Pittsburgh Penguins, Jacques Menard, Chairman, BMO Nesbitt Burns and President, BMO Financial Group, Quebec, Pat Brisson, Co-Head, CAA Sports, Creative Artists Agency, Dr. Marc J. Philippon, Orthopedic Surgeon at the Steadman Hawkins Clinic, and Dr. Pierre Ranger, Orthopedic Surgeon at Montreal's Sacre-Coeur Hospital.
2010 will be a year of setting the stage for future growth while aiming for double-digit growth in web-based software sales. The Company hopes to achieve this future growth by modifying its current applications and technologies to adapt them to the needs of health club members to further penetrate the fitness markets in North America, Europe and Japan. As part of these efforts, Biotonix also expects to tap into new sports markets with the planned launch of a customized posture evaluation solution for golfing in the second quarter of 2010. The new solution will be built on Biotonix's core imaging software technology and designed to assess static posture, body alignment and other important parameters that may enhance golfers' performance.
Biotonix's R&D focus will be primarily on the postural alignment table which is currently at the first prototype development stage. The Company expects to initiate a clinical trial for the use of its postural alignment table during the second half of 2010. This novel orthotic product will expand Biotonix's array of solutions for assessing, improving and correcting postural deviations.
About Biotonix's web-based solution for posture correction
Back pain is the most widespread orthopedic condition in the United States; each year, 1 in 9 Americans, or 11 percent of the U.S. population, experience an episode of back pain severe enough to impair their usual daily activities(1). Published literature supports the inclusion of postural coordination re-training for the rehabilitation of chronic, recurrent low back pain(2).
First introduced in 1996 at the Atlanta Olympics Games, 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. The business model is similar to that of an Application Service Provider (ASP) where the client is charged on a per-use basis (fee per transaction).
All aspects of the Biotonix system are based on well-established scientific principles, and the exercises are guided by world recognized guidelines, recommended by authorities, and research at the UQTR and McGill University which has shown the system to be both valid and reliable. Today, 11 University centres work with Biotonix systems as research, teaching or diagnostic tools. The Biotonix system has been listed as a Class 1 Medical Device both by the U.S. Food and Drug Administration (FDA) and Health Canada.
To date, the Company has generated over 300,000 postural and fitness assessments, including over 1,000 world-class athletes, NBA, NHL and NFL teams.
About Biotonix's R&D program: novel orthotics for the back and foot
With orthotics devices it can be possible to overcome some physical limitations in replacement of a corrective exercise program. That is why the Company initiated a R&D program to develop novel orthotics for the back and foot.
Using the postural and biomechanical assessment data generated by the Biotonix system, the Company's aim is to manufacture and deliver custom-made orthotics for the back and foot, using a new technology and manufacturing process. A postural alignment table is also being developed. Biotonix is developing these new products in partnership with PPD Group, a polymers and rubber compounds specialty company.
(1) Carey TS, Evans AT, Hadler NM, et al: Acute severe low back pain: A population-based study of prevalence and care-seeking. Spine 1996;21:339-344. (2) Jacobs JV, Henry SM & Nagle KJ: Low back pain associates with altered activity of the cerebral cortex prior to arm movements that require postural adjustment. Clin Neurophysiol. 2010;121(3):431-40Financial results
Capital Valmoris Inc. (Capital Pool Company now Biotonix (2010) Inc.) financial results for the 14-month period ended December 31, 2009 and Biotonix Inc. (now 32527326 Canada Inc.) financial results for the year ended December 31, 2009, are available on SEDAR. 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
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.
Julie M. Thibodeau, B.Sc., MBA
VP, Corporate communications and investor relations
514-840-0004 ext 223