COMPUMED, INC. ANNOUNCES EFFECTIVENESS OF REGISTRATION STATEMENT FOR $5 MILLION EQUITY LINE OF CREDIT
OsteoGram-Enhanced OfficePACS® System to be Launched at AAOS
LOS ANGELES, April 5, 2004 -- CompuMed, Inc. (CMPD.OB) -- a medical informatics company serving the healthcare community with diagnostic software solutions -- today announced that the Securities Exchange Commission has declared effective its Registration Statement on Form SB-2 relating to a $5 million equity line of credit.
CompuMed signed an agreement for the equity line in January with Boston- based Dutchess Private Equities. Under the terms of the agreement, CompuMed may elect to receive as much as $5 million from Dutchess in common stock purchases over the next three years.
The funds will be used to support CompuMed's ongoing operations, expansion of its CardioGram ECG (electrocardiogram) business and development of new medical imaging products. CardioGram sales received a recent boost as the company secured a contract to provide nearly 100 of its next generation, Internet-capable terminals to an existing correctional system client. Management expects the new CardioGram platform to serve as a catalyst for further expanding sales of the company's ECG products.
Among CompuMed's other new products is a DICOM (Digital Communications and Imaging in Medicine)-based version of the OsteoGram® system for low cost screening, diagnosis and monitoring of osteoporosis. It is the first in a line of new DICOM-based software applications the company plans to launch this year.
"Our Registration Statement was quickly declared effective by the SEC," said CompuMed CEO Jerry McLaughlin. "With this additional financing, CompuMed is now positioned to accelerate plans to develop a number of new medical imaging applications, including systems geared specifically to the rapidly growing market for bone disease diagnostics and monitoring."
CompuMed is currently integrating the OsteoGram system into a number of digital x-ray imaging platforms and PACS (Picture Archive Communication System) network servers.
"The interest generated by OsteoGram-enhanced PACS systems displayed at the recent annual meeting of the American Association of Orthopedic Surgeons (AAOS) validates our product integration strategy, which is designed to provide true workstation consolidation to clinicians," added McLaughlin.
About CompuMed:
Founded in 1973, CompuMed, Inc. (OTC Bulletin Board: CMPD) is a leading provider of computer-aided telemedicine and diagnostics technology. The company's core products are the OsteoGram® and CardioGram systems. The OsteoGram, which is cleared by the FDA for commercial use, is an accurate and precise technology for low-cost osteoporosis testing. The CardioGram system remotely interprets electrocardiograms and is used by private practice, government and corporate healthcare providers nationwide. The CardioGram also has the capability to automatically provide an over-read (i.e., follow-up review) by a cardiologist. CompuMed is in Los Angeles. Visit CompuMed at www.compumed.net or call (310) 258-5000.
About Dutchess Advisors, LLC:
Dutchess Advisors, LLC is engaged in assisting growth companies in all facets of their long-term strategy by providing capital and progressive business solutions. Through Dutchess Private Equities Fund, LP, it manages a portfolio of private investments in public equities. Although the Company's investments are passive in nature, Dutchess provides a wide range of advisory services to assist its client companies long after the initial infusion of capital. Founded in 1996, Dutchess has been involved in excess of $200 million in financings for such companies.
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, ability to raise capital, the availability of appropriate acquisition candidates and/or business partnerships, economic conditions, the impact of competition and pricing, capacity and supply constraints or difficulties, government regulation and other risks defined in this document. All such forward-looking statements whether written or oral, and whether made by or on behalf of the Company are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof except as required by law.
CONTACT: Erik Deutsch - Tellem Worldwide, +1 (310) 479-6111 x.15, edeutsch@tellem.com