TORONTO, June 18, 2010 – 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 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.