VANCOUVER, BC / June 8, 2020 / / CVR Medical Corp. (CVM.V) (TSXV: CVM) (OTCQB: CRRVF)
(“CVR Medical” or the “Company” or “we“) a Canadian listed and US based healthcare company in the medical device market, provides an update on the proposed Restructuring Agreement previously announced on March 16, 2020 and severance agreement with Peter Bakema, former CEO.
The parties have terminated and cancelled the previously announced restructuring agreement and the Board of Directors is in the process of renegotiating an alternative restructuring agreement with CVR Global Inc. A special meeting of the shareholders will be called to vote on any agreement that may be reached after conditional approval from the TSX-V is received. As well, any restructuring agreement will be subject to disinterested shareholder approval and final TSX-V acceptance. The former CEO Peter Bakema will hold more than 10% of CVR Medical shares, however, his involvement with the Company will be as a shareholder only and subject to a voting trust agreement. Mr. Bakema will for a period of (12) twelve months assist in an unpaid capacity to coordinate and transition ongoing capital development efforts.
The Board of Directors has also agreed to a severance package with Mr. Bakema. The severance agreement states that Mr. Bakema is to receive US $500,000 in monthly installments (US $15,000/month) to begin after CVR Medical receives at least US $1,000,000 in new investment. The balance of a house loan of US
$130,639 is to be deducted from the monthly payments (US $5,000/month) until the loan is paid in full. This package settles any unpaid salaries due to Mr. Bakema from 2016 through 2019. Upon review of the agreement by the Company’s audit firm, no restatement of prior financials is expected.
About CVR Medical
CVR Medical Corp. is a healthcare company that operates in the medical device industry focused on the commercialization of its disruptive, proprietary Carotid Stenotic Scan device (the “CSS“). The CSS is a diagnostic tool that encompasses subsonic, infrasonic, and low frequency sound wave analysis technology. The CSS is a patented device designed to detect and measure carotid arterial stenosis. CVR Medical’s shares are listed on the OTCQX under the symbol “CRRVF”. The Company has applied for reinstatement of trading on the TSX-v, and was previously listed for trading under the symbol “CVM”. Additional information regarding the Company can be found in our recent filings with the SEDAR as well as the information maintained on our website at www.cvrmed.com
ON BEHALF OF THE BOARD:
(signed) Paul Blunden, M.D.
President & Director
For further information contact:
Paul Blunden, M.D., President/ Director Email: firstname.lastname@example.org
This press release contains forward-looking information that involves various risks and uncertainties regarding future events related to: trading on and dialogue with the Exchange, communications and negotiations with CVR Global, dialogue with certain advisors, the Term Sheet, the Proposed Restructuring, the Definitive Agreement, the License Agreement, the Review, certain corporate and securities law requirements, raising capital, the 2019 Audit and potential litigation. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements and are not guarantees of future performance of the Company. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a failure or material setback in negotiations between the Company and CVR Global; (2) a failure of the Company to resume trading on the Exchange; (3) a failure of the Company to raise capital sufficient capital to relaunch the Company; (4) an inability to enter into a definitive agreement with CVR Global; (5)a downturn in general economic conditions in North America and internationally, (6) the inherent uncertainties and speculative nature associated with commercialization of technology and the practice of medicine;(7) a change in health regulations; (8) any number of events or causes which may delay or cease commercialization and development of the CSS Device; (9) the risk that the Company does not execute its business plan, (10) the risk of litigation between the Company and certain shareholders and the risk of litigation generally; (11) an inability to retain key employees, (12) am inability to finance operations and growth, (13) compliance with certain corporate and securities law requirements; and (14) other factors that are beyond the Company’s control. These forward-looking statements are made as of the date of this news release and, except as required by law, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.
THE TSX VENTURE EXCHANGE INC. HAS NEITHER APPROVED NOR DISAPPROVED THE CONTENTS OF THIS PRESS RELEASE. NEITHER THE 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.