SANTA CLARA, Calif., Sept. 2 /PRNewswire-FirstCall/ -- NewCardio (OTC Bulletin Board: NWCI) a cardiac diagnostic technology provider, today announced that Vincent Renz, Jr., NewCardio's President and CEO, purchased 128,000 shares during his trading window in open market transactions in the two weeks following the Company's filing of its SEC Form 10-Q and earnings conference for the second quarter ended June 30, 2010.
"As discussed on our August 12, 2010 investor conference call, we are focused on the underlying fundamentals that will enable us to create long term value for our employees, customers and shareholders," commented Mr. Renz. "We continue to make steady progress with the commercialization of QTinno™ as our efforts to enhance market awareness and adoption through our interactions with clinical trial service providers, sponsors and regulatory authorities are starting to translate into increasing sales opportunities which we believe will drive revenue growth and expansion. In addition, we are working to identify opportunities, either through strategic partnerships or other relationships, to source additional capital that will enable us to accelerate the development and commercialization of our proven 3-D platform technology in delivering additional solutions which will advance the ECG as a diagnostic tool."
Mr. Renz continued, "Specifically, the additional capital will be focused on the commercialization of our second and third products, CardioBip™ and Cardio3KG™. Based on the progress we have made in the development and validation efforts to date, as well as the size of the potential markets that these solutions will address, I do not believe the market has appropriately valued NewCardio, for either our achievements to date or the potential of our underlying 3-D technology platform. My recent purchases demonstrate my confidence in our ability to create long term value and reinforce my long-term commitment to helping the Company maximize its chances for success."
In conjunction with the December 2007 $8.2 million PIPE financing, on August 27, 2010, several early investors, including select members of the board of directors, pursuant to lock-up agreements they delivered to facilitate the PIPE financing, entered a lock-up period whereby they cannot sell any NewCardio stock for the one year through August 27, 2011. This group represents more than one-third of the approximately 30 million shares of common stock outstanding. In anticipation of this one year lock-up, and in conjunction with his transition from CEO and his voluntary salary reduction taken as part of the current expense reduction plan that was put in place by management to strengthen its financial position, Branislav Vajdic, Ph.D., Founder, Vice Chairman and NewCardio Fellow and one of the investors subject to the lock-up, sold 295,000 shares. The sale represents his only sale since founding the Company in 2004.
Describing the trade, Dr. Vajdic stated, "I am pleased and proud to continue to be the single largest shareholder of NewCardio, and thus believe I am fully aligned with all our shareholders. I remain committed to the success of the Company and believe that we are getting close to achieving the promise we saw when we founded the Company around our powerful 3-D technology platform to improve the value of the most widely used cardiology diagnostic tool in the world, the ECG. As part of our plan moving forward, I retain approximately 97% of my holdings and NewCardio remains my single largest personal asset. This was a limited opportunity to provide some liquidity and I remain fully committed to the success of the Company both as the Vice Chairman and a key technical expert."
In aggregate, officers and directors now beneficially own approximately 36% of the NewCardio's outstanding common stock.
About NewCardio, Inc.NewCardio is a cardiac diagnostic and services company developing and marketing proprietary software platform technologies to provide higher accuracy to, and increase the value of, the standard 12-lead ECG. NewCardio's 3-D ECG software platform reduces the time and expense involved in assessing cardiac status while increasing the ability to diagnose clinically significant conditions which were previously difficult to detect. NewCardio's software products and services significantly improve the diagnosis and monitoring of cardiovascular disease, as well as cardiac safety assessment of drugs under development. For more information, visit www.newcardio.com.
Forward-Looking StatementsThis press release contains forward-looking statements. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based on currently available information and assumptions made by management. Although we believe that the assumptions on which the forward-looking statements contained herein are based are reasonable, any of those assumptions could prove to be inaccurate given the inherent uncertainties as to the occurrence or nonoccurrence of future events. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including the potential risks and uncertainties set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2009 and relate to our business plan, our business strategy, development of our proprietary technology platform and our products, timing of such development, timing and results of clinical trials, level and timing of FDA regulatory clearance or review, market acceptance of our products, protection of our intellectual property, implementation of our strategic, operating and people initiatives, benefits to be derived from personnel and directors, ability to commercialize our products, our assumptions regarding cash flow from operations and cash on-hand, the amount and timing of operating costs and capital expenditures relating to the expansion of our business, operations and infrastructure, implementation of marketing programs, our key agreements and strategic alliances, our ability to obtain additional capital as, and when, needed, and on acceptable terms and general economic conditions specific to our industry, any of which could impact sales, costs and expenses and/or planned strategies and timing. We assume no obligation to, and do not currently intend to, update these forward-looking statements.
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