LOS ANGELES, CALIFORNIA--(Marketwired - Jan. 7, 2015) -


Patient Home Monitoring Corp. (TSX VENTURE:PHM) ("PHM") announced it has executed a non-binding Letter of Intent (LOI) to acquire a company reporting unaudited 10 month annualized revenues of approximately $2,250,000 and Adjusted EBITDA margins in excess of 20%. This addition to our existing Georgia locations makes PHM a dominant provider of home-based health monitoring services in the state.

The acquisition of this growing and profitable company is expected to be immediately accretive to the income statement and will increase PHM's earnings-per-share (EPS). As a result of this acquisition and the LOI announced on December 22nd, both expected to close in the first calendar quarter of 2015, PHM's annual revenue run rate is expected to be over $50,000,000 at the time of close.

The business is focused on offering home-based pulmnology services for patients with sleep apnea, oxygen needs and other diseases of the lungs. After the acquisition, PHM expects continued strong organic Adjusted EBITDA growth from cross selling.

According to the LOI, PHM expects to close the acquisition with approximately $1,500,000 in cash and approximately 650,000 PHM common shares depending on final due diligence of trailing 12 month Adjusted EBITDA. Closing the acquisitions will be subject to final due diligence and a binding purchase agreement.

"With this acquisition, we continue our expansion across the lucrative southeast region of the US market," said Michael Dalsin, Chairman of PHM. "While this acquisition is smaller in size, we can use our regional expertise and infrastructure to achieve significant revenue and profit growth through offering cardiology and Complex COPD services. We are targeting this quarter to close this acquisition and the most recently announced LOI in the current quarter. I expect this will have an immediate positive impact on our growth. We have a very full pipeline of potential deals and we are continuing to grow our M&A department. I continue to believe we will close 5 deals this year, significantly increasing revenues, profits and, most importantly, earnings per share."

About PHM

The explosive growth in the number of elderly patients in the US healthcare market is creating pressure to provide more efficient delivery systems. Healthcare providers, such as hospitals, physicians and pharmacies, are seeking partners that can offer a range of products and services that improve outcomes, reduce hospital readmissions, and help control costs. PHM fills this need by delivering a growing number of specialized products and services to achieve these goals. PHM is a positive cash flow and profitable company that serves patients with heart disease and other chronic health conditions, this operation is a platform for acquisitions and organic growth. PHM is focused on a highly fragmented and developing market of small privately-held companies servicing chronically ill patients with multiple disease states caused mainly by age and obesity. Because of the new and highly fragmented nature of the market, PHM is actively working to identify and evaluate profitable, annuity-based companies to acquire their patient databases and technical expertise at favorable prices. PHM's post acquisition organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient's services and making life easier for the patient. The expected result is growing EPS with each acquisition and growing revenue and profits from the cross selling efforts.

These Adjusted EBITDA figures are unaudited and may change subject to due diligence and closing procedures. They are intended only as an estimate of trailing twelve month Adjusted EBITDA of the combined entities and are not meant to convey forward looking information. Adjusted EBITDA is a Non-IFRS measure the Company uses as an indicator of financial health, and excludes several items which may be useful in the consideration of the financial condition of the Company, including interest expense, taxes, depreciation, amortization, stock based compensation, and owner compensation.

Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of PHM and anticipated events or results, are assumptions based on beliefs of PHM's senior management as well as information currently available to it. While these assumptions were considered reasonable by PHM at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including the availability of funds and resources to pursue operations, decline of reimbursement rates, dependence on few payors, possible new drug discoveries, a novel business model, dependence on key suppliers, granting of permits and licenses in a highly regulated business, competition, low profit market segments as well as general economic, market and business conditions, and could differ materially from what is currently expected.

Neither 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.

This press release does not constitute and the subject matter hereof is not, an offer for sale or a solicitation of an offer to buy, in the United States or to any "U.S. Person" (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "1933 Act")) of any equity or other securities of PHM. The securities of PHM have not been registered under the 1933 Act and may not be offered or sold in the United States (or to a U.S. Person) absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act.

Contact Information:

Patient Home Monitoring Corp.
Dennis Wilson
Corporate Affairs