ART acquires Canadian device maker to delve into diagnostic services

Arrhythmia Research Technology (ART) has completed the purchase of RMDDx, an Atlantic City, Prince Edward Island-based development stage company, through its newly formed U.S. subsidiary, RMDDxUSA, as of June 18.

ART develops signal-averaging electrocardiography software used for detecting heart arrhythmias in addition to cardiac sensors and component parts for medical equipment through its subsidiaries. The company sees the acquisition as a way to "establish a place for ART in the medical device and diagnostic services market," and provide a platform “for further development and application of ART's software," said ART’s CEO James Rouse.

ART said it issued an aggregate of 115,033 shares of its unregistered common stock and five-year options to acquire an aggregate of 60,000 shares of common stock, exercisable at $4.76 per share, in the transaction in exchange for the entirety of the outstanding shares and options of RMDDx. All of the shares of common stock were immediately placed in escrow and the stock and options are subject to release from escrow and vesting, respectively, only in the event that certain performance and other targets are met.

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