Business
Diversinet and AllOne Reach Settlement Agreement
Diversinet and AllOne Reach Settlement Agreement
About this update from Diversified Royalty Corp.
[{"type":"text","content":"\n\n\n\n Jun. 18, 2010 (Canada NewsWire Group) -- Terms Enable Diversinet to Freely Market Secure Mobile Healthcare Applications Worldwide\n\n 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.\nAccording 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.\nAdditionally, 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.\nHSA 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.\nPro 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.\n"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."\nDiversinet's increased emphasis on mobile health, announced in March, includes these key elements:\n\n\n >\n\n\nAllOne License Agreement Background\n\nIn September 2008, Diversinet entered into the License Agreement with AllOne, a wholly owned subsi...