CVR Medical Announces Proposed $5M Institutionally Led Financing

VANCOUVER, BC / ACCESSWIRE / March 20, 2017 / CVR Medical Corp. (TSX.V:CVM) (FRANKFURT: B3BN) (OTCQB: CRRVF) (“CVR Medical“) a leading research and development company aiming to make arterial diagnostic testing significantly more accessible with its “Carotid Stenotic Scan (CSS)” device, is pleased to announce its intention to complete an institutionally led non-brokered private placement financing for gross proceeds of up to $5,000,000 (the “Financing“). The Financing will consist of 11,111,112 units at a price of $0.45 per unit. Each unit will be comprised of one common share and one-half of one common share purchase warrant.  Each whole common share purchase warrant will be exercisable to acquire one common share of CVR Medical at a price of $0.70 per share for a period of eighteen months following the closing of the Financing. The net proceeds from the Financing will be used for R&D, tertiary clinical trials, pivotal clinical trials, preparation for FDA submission, and operations relating to the joint venture described below. This includes the current clinical trials being lead by Dr. David J. Whellan at Thomas Jefferson University. Echelon Wealth Partners will act as finder for the Financing.

The Financing is non-brokered. CVR Medical intends to pay broker commissions or finder’s fees of up to 6.0% in cash and 6.0% in warrants in connection with the Financing. Certain directors, officers and insiders of the Company may participate in the Financing. Completion of the Financing is subject to Exchange acceptance, and all securities issued pursuant to the Financing will be subject to a hold period of four months and one day as required under applicable securities legislation.

The securities referred to herein will not be or have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

For additional information on the organization, leadership, and current news please visit the newly launched company website www.CVRMed.com

About CVR Medical

CVR Medical is a company that is involved in an equal parts joint venture with CVR Global Inc. (the “Joint Venture”). The Joint Venture operates in the medical industry focused on the commercialization of a proprietary subsonic, infrasonic, and low frequency sound wave analysis technology and has patents to a diagnostic device designed to detect and measure carotid arterial stenosis. CVR Medical is managed by a proven technical team. CVR Medical trades on the TSX Venture Exchange under the symbol CVM.

For further information contact:

Brisco Capital Partners Corp.
Scott Koyich, President
Telephone: (403) 262-9888

This press release contains forward-looking information that involves various risks and uncertainties regarding future events related to the Joint Venture and the proposed Financing. 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 downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with commercialization of technology and the practice of medicine, (3) a change in health regulations, (4) any number of events or causes which may delay or cease commercialization and development of the Joint Venture, (5) the risk that the Company or the Joint Venture does not execute its business plan, (6) inability to retain key employees, (7) inability to finance operations and growth, and (8) other factors 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.