Diversinet, a secure mobile healthcare applications provider, has reached a settlement with AllOne Mobile and its parent company, AllOne Heath Group, to terminate their September 2008 license and revenue sharing agreement.
According to the terms of the settlement, AllOne will pay Diversinet $4 million to terminate the license agreement that was established in 2008, including any future revenue sharing obligations. Diversinet, based in Toronto, also will retain ownership and control of its related intellectual property developed during the time the license agreement was in effect.
In addition, the parent company of AllOne Heath Group, Hospital Service Association of Northeastern Pennsylvania, d/b/a Blue Cross of Northeastern Pennsylvania, will return to Diversinet all of its common shares of Diversinet, totalling close to seven million shares.
Pro forma of the successfully executed settlement agreement, Diversinet expects to have more than $14 million in cash and cash equivalents and approximately 41.7 million in common shares outstanding and 47.4 million fully diluted.
Diversinet’s increased emphasis on mobile health, announced in March, includes these elements:
- New mobile health products and product enhancements;
- Customized portals to support mobile health applications for physicians and healthcare providers; and
- An expanded network of healthcare partners.