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VMS Rehab Systems Inc (VMS1)

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Friday 21 February, 2014

VMS Rehab Systems Inc

Completes Purchase Agreement for BioPharmcor Sp...

News release


For Immediate Release

February 21, 2014

Ottawa, ON: VMS Rehab Systems Inc, ( reports that it
has completed a definitive purchase agreement with Dutch based Argus Holdings
NV for the purchase of all of the issued and outstanding shares of Warsaw based
BioPharmcor Sp z o.o., an early stage company engaged in the development of
generic drugs keyed to the male gender population.

The transaction which is comprised of both cash and VMS Class `B' voting
shares, increasesthe aggregate of VMS Class `B' shares issued and outstanding
to 5,812,500. In addition, the transaction offers Argus Holdings the
opportunity to improve its return should it choose to exercise a package of
stock options to increase its holdings in VMS.

A spokesperson for VMS explains that ` Under the terms of the Purchase
transaction with Argus Holdings, Argus has initially received less than what it
originally paid for the early stage generic drugs business in 2011. However, at
the end of the day, we seethe option package as yielding lucrative benefits for
both parties, On the one hand, it provides Argus with the opportunity of
fortifying its return on the transaction with VMS as BioPharmcor moves forward
with development of its pipeline generic drug program; On the other hand, it
holds out the possibility of providing substantial additional working capital
for VMS."

Established in 1998, VMS is a Canadian incorporated company with headquarters
in Ottawa, Ontario. The Company is currently a supplier of 'qualityof life'
branded orthopedic seat cushion products to the home healthcare market in
Canada.The Company recently indicated that it intends to supply a
proprietarybranded line of orthopedic seat cushion products for the European

Shares of VMS Rehab Systems, Inc are listed on the First Quote segment of the
GXG Markets (symbol : VMS1).

For More Information Contact:
Michael Wexler
IR/VMS Rehab Systems
Tel: 1 613 292-2307 /. +48-787 668 861
E-mail: [email protected]


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