GlobeNewswire
2011-11-28
Authentidate Also Entered Into a License Agreement for
Related Intellectual Property
BERKELEY HEIGHTS, N.J., Nov. 28, 2011 (GLOBE NEWSWIRE) -- Authentidate
Holding Corp. (Nasdaq:ADAT), a provider of secure web-based software
applications and telehealth products and services for healthcare
organizations, today announced that it has completed a transaction with
EncounterCare Solutions, Inc., its joint venture partner in ExpressMD
Solutions, LLC, pursuant to which EncounterCare Solutions agreed to
transfer its ownership interest in the joint venture to Authentidate
and ExpressMD Solutions became a wholly-owned subsidiary of
Authentidate. In addition, in connection with this transaction,
EncounterCare Solutions and an affiliated company granted Authentidate
a worldwide, perpetual, irrevocable, royalty-free, non-transferable
(except as defined), non-exclusive license to use their intellectual
property to continue to commercialize and develop the Electronic House
Call remote patient monitoring device and related software sold by
ExpressMD and to develop improvements and other products based on such
intellectual property.
Ben Benjamin, Chief Executive Officer of Authentidate, stated, "We are
pleased to have completed this transaction with EncounterCare Solutions
and we believe that it will allow us to increase our focus on growing
our telehealth business. This transaction represents a milestone for
Authentidate as we continue to commercialize our telehealth products
and solutions. We believe that we have accomplished positive work in
the telehealth space with our former joint venture partner,
EncounterCare Solutions, and believe we will be able to enhance
shareholder value for them and our other shareholders as we continue to
grow our business."
In the transaction, Authentidate agreed to pay EncounterCare Solutions
$1,000,000 in cash, payable over a period of 12 months, and to issue it
1,500,000 shares of its common stock. The transaction closed on
November 21, 2011.
Mr. Benjamin continued, "As a wholly owned subsidiary, we believe that
ExpressMD will have greater flexibility to respond to emerging market
needs in the telehealth space and will be better able to continue to
offer innovative and leading-edge products and solutions to support
customers seeking ways to reduce costs, enhance patient care and comply
with new government requirements concerning the use of information
technology. We also believe that this new structure will enable us to
more effectively combine our telehealth solutions with our hospital
discharge and referral and order management solutions to offer the full
range of solutions healthcare providers will need to support emerging
market trends focused on providing a continuum of care for patients."
About Authentidate Holding Corp.
Authentidate Holding Corp. is a provider of secure web-based software
applications and telehealth products and services that enable
healthcare organizations to coordinate care for patients and enhance
related administrative and clinical workflows. Our products and
services enable healthcare organizations to increase revenues, reduce
costs and enhance patient care by eliminating paper and manual work
steps from clinical and administrative processes. Our ExpressMD
telehealth solution combines Electronic House Call, an FDA 510(k)
cleared in-home patient vital signs monitoring system, with a web
application that streamlines patient monitoring. Delivered as Software
as a Service (SaaS), customers only require an Internet connection and
web browser to access our web-based applications thereby utilizing
previous investments in systems and technology. The company's
healthcare customers and users include leading homecare companies,
health systems, physician groups and governmental entities. These
organizations utilize the company's products and services to coordinate
care for patients outside of acute-care.
For more information, visit the company's website at
www.authentidate.com
This press release contains forward-looking statements within the
meaning of section 27A of the Securities Act of 1933 and section 21E of
the Securities Act of 1934. When used in this release, the words
"believe," "anticipate," "think," "intend," "plan," "will be,"
"expect," and similar expressions identify such forward-looking
statements. Such statements regarding future events and/or the future
financial performance of the company are subject to certain risks and
uncertainties, which could cause actual events or the actual future
results of the company to differ materially from any forward-looking
statement. Such risks and uncertainties include, among other things,
the availability of any needed financing, the company's ability to
implement its business plan for various applications of its
technologies, the impact of competition, the management of growth, and
the other risks and uncertainties that may be detailed from time to
time in the company's reports filed with the Securities and Exchange
Commission. In light of the significant risks and uncertainties
inherent in the forward-looking statements included herein, the
inclusion of such statements should not be regarded as a representation
by the company or any other person that the objectives and plans of the
company will be achieved.
Authentidate and Inscrybe are registered trademarks of Authentidate
Holding Corp. ExpressMD is a trademark of our subsidiary ExpressMD
Solutions, LLC. All other trade names are the property of their
respective owners.
CONTACT: Investor Contacts:
Robert Schatz
Wolfe Axelrod Weinberger Assoc. LLC
(212) 370-4500; (212) 370-4505 fax