PositiveID Corporation Agrees to Sell Its Health Link Personal Health Record Business for $1 Million
Agreement Also Provides for Future Royalties on Revenues From Health Link
DELRAY BEACH, Fla., Sep 8, 2010 (GlobeNewswire via COMTEX News Network) -- PositiveID Corporation ("PositiveID" or the "Company") (Nasdaq:PSID) announced today that it has agreed to sell its Health Link personal health record business for $1 million to Health Plexus, LLC. The Company will also retain the right to royalties on future Health Link revenues. Health Link is the Company's web-based personal health record (PHR), which is non-core to the Company's primary HealthID division. HealthID develops and markets unique medical devices, with a focus on diabetes management, and rapid medical testing products.
Scott R. Silverman, Chairman and CEO of PositiveID, said, "Since 2004, we have been a player in the PHR market. Although we believe in the eventual migration to electronic health records and expect that we will see increased use by individuals, this is a non-core asset that requires significant resources to operate. Instead, we believe we have received fair value for the business today, which has produced minimal revenue, and will have a potential upside interest based on future adoption of PHRs."
The $1 million purchase price of the Health Link business will be structured in the form of a Note.
About PositiveID Corporation
PositiveID Corporation develops and markets healthcare and information management products through its RFID-based diagnostic devices and identification technologies, and its proprietary disease management tools. PositiveID operates in two main divisions: HealthID and ID Security. For more information on PositiveID, please visit www.PositiveIDCorp.com.
The PositiveID Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7717
Statements about PositiveID's future expectations, including the likelihood that the Company will receive future royalties on revenues from Health Link, the likelihood that the Company will see increased use of electronic health records by individuals, the likelihood that the Company will receive the $1 million purchase price, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and PositiveID's actual results could differ materially from expected results. These risks and uncertainties include the likelihood the Company will complete the sale of its Health Link business, receive future royalties on revenues, receive the $1 million purchase price, as well as certain other risks. Additional information about these and other factors that could affect the Company's business is set forth in the Company's various filings with the Securities and Exchange Commission, including those set forth in the Company's 10-K filed on March 19, 2010, and the Company's 10-Q filed on August 13, 2010, under the caption "Risk Factors." The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: PositiveID Corporation
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JMC Ministries Response
Written By Jeremy Caverley
This is only the beginning of the transfer of RFID business to other companies. Those that just keep a watch on VeriChip/Positive ID must continue to see the bigger picture.
Money is the key here for now, not world domination, but over time and in the wrong hands this product will be used for evil. Yes in the eyes of God, Christians must not take these chips into their bodies as per the book of Revelation.
So keep your eyes opened and your hearts ready for the wisdom of God to reveal more things to come in the future.
We must be prepared!
