August 22, 2012
Diagnostic Imaging International Corp.
Agreement to Acquire First MRI Clinic
Las Vegas, NV - August 22, 2012 - Diagnostic Imaging International Corp. (OTCQB: DIIG) is pleased to announce that on August 13, 2012, the Company entered into an agreement with the owners of an MRI clinic located in the greater Philadelphia region. Pursuant to the terms of the acquisition agreement, the Company is to purchase all of the outstanding capital stock of the Facility for an aggregate purchase price of $1,950,000, plus a possible earn-out payment of up to $200,000 if certain post-closing revenue targets are met.
The clinic had revenues of just under $2,000,000 in 2011 and was cash flow positive by almost $600,000. Upon closing, the additional revenue from the clinic acquisition would increase DIIG annual revenues by almost 60%, with projected 2013 EBITDA of almost $0.04 per share.
The transaction is subject to certain customary closing conditions, including, among other things, the satisfactory completion of the Company‚Äôs due diligence review of the clinic, the continued regulatory compliance of the Clinic, the completion of a financial audit of the Clinic, which shall be acceptable to the Company, and the continued employment of specified personnel of the Clinic. Additionally, the acquisition of the Clinic may be abandoned by the Company at any time, in its sole discretion. The Company will have to obtain financing for the purchase price. Subject to the satisfaction or waiver of all closing conditions, and obtaining the necessary financing, the Company expects to close the transaction by October 15, 2012.
To find out more about Diagnostic Imaging International Corp. (OTCBB: DIIG), visit our website at diig.biz. Or contact the Company directly at (877) 331-3444.
Diagnostic Imaging International Corp., ("DIIG") is planning to acquire diagnostic imaging clinics including MRI clinics, Computed Tomography scan equipment, and to evaluate future opportunities for Positron Emission Tomography clinics. DIIG owns and operates CTS, a Teleradiology company. Teleradiology is the process of assessing radiological patient images, such as x-rays, CTs, and MRIs, from one location to another for the purposes of interpretation and/or consultation. CTS provides remote radiology (teleradiology) technology to hospitals and practices, on-call 24 hours a day, 7days a week. CTS connects clients with a global teleradiology network, providing access to global partner facilities and American and Canadian board-certified radiologists.
This news release includes forward-looking statements that reflect Diagnostic Imaging International Corp.'s current expectations about its future results, performance, prospects and opportunities. Diagnostic Imaging International Corp. has tried to identify these forward-looking statements by using words and phrases such as "may", "will", "expects", "anticipates", "believes", "intends", "estimates", "should", "typical", "we are confident" or similar expressions. These forward-looking statements are based on information currently available to Diagnostic Imaging International Corp. and are subject to a number of risks, uncertainties and other factors that could cause the Company's actual results, performance, prospects of opportunities in the remainder of 2010 and beyond, to differ materially from those expressed in, or implied by, these forward-looking statements.