TNSX Transax International Signs $5.9 Million Letter of Intent to Sell MedLink Subsidiary and Related Intellectual Property
Transax to Retain IP Rights for the USA Market
MIAMI, FL, Jan 19, 2007 (MARKET WIRE via COMTEX) -- Transax International Limited (Transax) (OTCBB: TNSX), a network solutions company for healthcare providers and health insurance companies, today announced that it has signed a Letter of Intent with CBGS -- Gestao e Processamento de Infomacoes de Saude Ltda. ("CBGS") to sell its wholly owned Brazil subsidiary Medlink Conectividade em Saude Ltda. ("Medlink") and related intellectual property held by its subsidiary Medlink Technologies, Inc. for 12.625 million Brazilian Reais (U.S. $5.9 million).
CBGS is a company created to provide technology services to companies operating in the health sector in Brazil. CBGS is a subsidiary of Companhia Brasileira de Meios de Pagamento ("CBMP"). CBMP is the leading credit card payment processor in Brazil.
Under specific terms of the Letter of Intent CBGS will pay all cash and retain operating control of Medlink's assets and intellectual property rights in Brazil. The transaction is subject to operating, financial and legal due diligence, any closing balance sheet adjustments, and signing of definitive agreements which both parties anticipate completing by February 28, 2007.
Stephen Walters, President & CEO of Transax, commented, "We are pleased to have been able to reach an agreement with CBGS in monetizing our Brazilian operations. Transax will continue to retain certain licensing rights outside of Latin America and IP rights for the USA market at no cost. This transaction will also significantly strengthen our Balance Sheet. As a result we intend to pay off all outstanding debts, including the $1.6 million preferred equity investment by Cornell Capital, as well as drastically increasing our cash position. Additionally, we will evaluate future business opportunities and update investors as warranted."
About Transax International Limited
AI
